Question

On September 1, Pat Hopkins established On a Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $15,000 for 1,500 shares of OCC. On September 8, OCC borrowed $22,000 from a bank, promising to repay the bank in two years. On September 10, OCC wrote a check for $17,000 to acquire computer equipment. On September 15, OCC received $1,550 of supplies purchased on account and, on September 16, paid $1,550 for September rent. Through September 22, OCC billed its customers for $11,850 of services, of which OCC collected $7,450 in cash. On September 28, OCC paid $615 for Internet and phone service this month. On September 29, OCC paid wages of $5,800 for the month. Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $780. This amount will be paid on October 14 through a preauthorized online payment.

Required:

1.

Indicate the accounting equation effects of the September events, using table below. Reference each transaction by date. (Enter any decreases to account balances with a minus sign.)

(BELOW IS WHAT I HAVE SO FAR, BUT I CAN'T FIGURE THE REST OUT.)

	Assets		=	Liabilities		+	Stockholders’ Equity
September 01	Cash	15,000					Common Stock	15,000
September 08	Cash	22,000		Note Payable	22,000
September 10	Equipment	17,000
September 15	Supplies	1,550		Accounts Payable	1,550
September 16	Cash	(1,550)
September 22	Cash	7,450		Accounts Receivable	11,850
September 28	Cash	(615)
September 29	Cash	5,800					Salaries and Wages Expense	(5,800)
September 30				Accounts Payable	780		Utilities Expense	(780)

Answer 1

1) Accounting equation:

	Assets		=	Liabilities		+	Stockholder's equity
September 01	Cash	15000					Common Stock	15000
September 08	Cash	22000		Notes payable	22000
September 10	Equipment	17000
	Bank	(17000)
September 15	Supplies	1550		Account payable	1550
September 16	Cash	(1550)					Rent expense	(1550)
September 22	Cash	7450					Service revenue	11850
	Account receivable	4400
September 28	Cash	(615)					Telephone and internet expense	(615)
September 29	Cash	(5800)					Wages expense	(5800)
September 30				Utilities payable	780		Utilities expense	(780)