Question

ASSIGNMENT

On July 2, you started a new company to paint metal products. You hope to receive business from local companies that need their metal products painted. The following transactions occurred during the month of July.

July

2 Received $25,000 cash from investors.

6 Received $3,600 cash for products painted for a local company.

10 Paid $400 for paint supplies.

14 Painted more metal parts, and billed the customer for $3,200. The money will be received in August.

18 Paid $900 for advertising expenses.

23 Purchased office furniture for $6,500. This was purchased with a down payment of $2,000 with the remaining balance due next month.

24 Paid utility bills of $350.

27 Returned $600 of office furniture to the supplier. The supplier deducted the return from the amount due.

29 Paid $1,700 in salaries.

30 Paid a $500 dividend to the owner.

Analyze the effects of these transactions on the individual elements of the accounting equation, and prepare tables of purchase of assets, generation of revenue, Recognition of expense,payment of account payable,payment of expenses,sale of an asset and dividend payed to the owner.

(please type the answer so it can be copied easily)

Answer 1