36 Sanyu Sony started a new business and completed these transactions during December. Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. The company rented office space and paid $1,000 cash for the December rent. 2 3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $800 cash. 6 The company completed electrical work and immediately collected $1,200 cash for these services. 8 The company purchased $2,530 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,000. 18 20 24 28 The company purchased $350 of office supplies on credit. The company paid $2,530 cash for the office equipment purchased on December 8. The company billed a client $900 for electrical work completed; the balance is due in 30 days. The company received $5,000 cash for the work completed on December 15. 29 30 The company paid the assistant's salary of $1,400 cash for this month. The company paid $540 cash for this month's utility bill. 31 The company paid $950 cash in dividends to the owner (sole shareholder). Date Cash + Accounts Receivable Check (1) Ending balances Cash, $59.180, Accounts Nyahin, $8.550 2 Not incume. $4.160 lotal esset, $76,760 Chapter 1 Accounting in Business Required 1. Create the following table similar to the one in Exhibit 1.9. -Liabilities + Office Electrical Accounts Office Supplies Equipment Equipment Payable + Assets Common Stock Dividends Equity Problem 1-9A Analyzing transactions and preparing financial statements C4 P1 P2 T +Revenues Expenses Use additions and subtractions within the table to show the dollar effects of each transaction on indi- vidual items of the accounting equation. Show new balances after each transaction. 2. Prepare the income statement and the statement of retained earnings for the current month, and the balance sheet as of the end of the month. 3. Prepare the statement of cash flows for the current month.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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36
Sanyu Sony started a new business and completed these transactions during December.
Dec. 1
2
3
5
6
8
15
18
20
Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in
the name of Sony Electric in exchange for its common stock.
The company rented office space and paid $1,000 cash for the December rent.
The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to
pay the $8,200 balance in 30 days.
The company purchased office supplies by paying $800 cash.
The company completed electrical work and immediately collected $1,200 cash for these services.
The company purchased $2,530 of office equipment on credit.
The company completed electrical work on credit in the amount of $5,000.
The company purchased $350 of office supplies on credit.
The company paid $2,530 cash for the office equipment purchased on December 8.
24
28
29
30
The company paid $540 cash for this month's utility bill.
31 The company paid $950 cash in dividends to the owner (sole shareholder).
The company billed a client $900 for electrical work completed; the balance is due in 30 days.
The company received $5,000 cash for the work completed on December 15.
The company paid the assistant's salary of $1,400 cash for this month.
Date Cash +
Accounts
Receivable
Check (1) Ending balances
Cash, $59,180, Accounts
Payahin, $8.550
(2) Net incume. $4.160 lotal
assets, $76,760
Chapter 1 Accounting in Business
Required
1. Create the following table similar to the one in Exhibit 1.9.
+
Assets
Office
Office
Electrical
Supplies Equipment Equipment
-Liabilities +
Accounts Common
Stock
Payable
Dividends
Equity
Problem 1-9A
Analyzing transactions and
preparing financial
statements
C4 P1 P2
+Revenues
T
Expenses
of each transaction on indi-
Use additions and subtractions within the table to show the dollar effe
vidual items of the accounting equation. Show new balances after each transaction.
2. Prepare the income statement and the statement of retained earnings for the current month, and the
balance sheet as of the end of the month.
3. Prepare the statement of cash flows for the current month.
Transcribed Image Text:36 Sanyu Sony started a new business and completed these transactions during December. Dec. 1 2 3 5 6 8 15 18 20 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. The company rented office space and paid $1,000 cash for the December rent. The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days. The company purchased office supplies by paying $800 cash. The company completed electrical work and immediately collected $1,200 cash for these services. The company purchased $2,530 of office equipment on credit. The company completed electrical work on credit in the amount of $5,000. The company purchased $350 of office supplies on credit. The company paid $2,530 cash for the office equipment purchased on December 8. 24 28 29 30 The company paid $540 cash for this month's utility bill. 31 The company paid $950 cash in dividends to the owner (sole shareholder). The company billed a client $900 for electrical work completed; the balance is due in 30 days. The company received $5,000 cash for the work completed on December 15. The company paid the assistant's salary of $1,400 cash for this month. Date Cash + Accounts Receivable Check (1) Ending balances Cash, $59,180, Accounts Payahin, $8.550 (2) Net incume. $4.160 lotal assets, $76,760 Chapter 1 Accounting in Business Required 1. Create the following table similar to the one in Exhibit 1.9. + Assets Office Office Electrical Supplies Equipment Equipment -Liabilities + Accounts Common Stock Payable Dividends Equity Problem 1-9A Analyzing transactions and preparing financial statements C4 P1 P2 +Revenues T Expenses of each transaction on indi- Use additions and subtractions within the table to show the dollar effe vidual items of the accounting equation. Show new balances after each transaction. 2. Prepare the income statement and the statement of retained earnings for the current month, and the balance sheet as of the end of the month. 3. Prepare the statement of cash flows for the current month.
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