^ 1-44 Problems Group A P-F:1-41A. Using the accounting equation for transaction analysis (Learning Objective 4) Meg McKinney opened a public relations firm called Solid Gold on August 1, 2024. The following amounts summarize her business on August 31, 2024: ASSETS Cash + Accounts + Office+ Land Receivable Supplies $0 +$15,000 Bal. $1,900+ $3,200 + LIABILITIES + Accounts Payable $5,000 Contributed Capital + EQUITY Retained Earnings Common -Dividends + Service Stock + $11,900 Rent-Advertising Expense Revenue Expense + $3,200 During September 2024, the business completed the following transactions: a. Received contribution of $17,000 cash from Meg McKinney in exchange for common stock. b. Performed service for a client and received cash of $800. c. Paid off the beginning balance of accounts payable. d. Purchased office supplies from OfficeMax on account, $1,200. e. Collected cash from a customer on account, $2,000. f. Cash dividends of $1,600 were paid to stockholders. g. Consulted for a new band and billed the client for services rendered, $4,500. h. Recorded the following business expenses for the month: Paid office rent: $1,000. Paid advertising: $500. Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented in Exhibit F:1-6.
^ 1-44 Problems Group A P-F:1-41A. Using the accounting equation for transaction analysis (Learning Objective 4) Meg McKinney opened a public relations firm called Solid Gold on August 1, 2024. The following amounts summarize her business on August 31, 2024: ASSETS Cash + Accounts + Office+ Land Receivable Supplies $0 +$15,000 Bal. $1,900+ $3,200 + LIABILITIES + Accounts Payable $5,000 Contributed Capital + EQUITY Retained Earnings Common -Dividends + Service Stock + $11,900 Rent-Advertising Expense Revenue Expense + $3,200 During September 2024, the business completed the following transactions: a. Received contribution of $17,000 cash from Meg McKinney in exchange for common stock. b. Performed service for a client and received cash of $800. c. Paid off the beginning balance of accounts payable. d. Purchased office supplies from OfficeMax on account, $1,200. e. Collected cash from a customer on account, $2,000. f. Cash dividends of $1,600 were paid to stockholders. g. Consulted for a new band and billed the client for services rendered, $4,500. h. Recorded the following business expenses for the month: Paid office rent: $1,000. Paid advertising: $500. Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented in Exhibit F:1-6.
Chapter2: Developing The Business Idea
Section: Chapter Questions
Problem 1kM
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