a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company. b. The company purchased an office suite for $40,000 cash. c. The company purchased office equipment for $15,000 cash. d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit. e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $2,800 for the service. g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee. h. Lita Lopez withdrew $3,275 cash from the company for personal use. i. The company received $1,800 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $1,800 cash for the office secretary's wages for this period. Required 1. Create the following table similar to the one in Exhibit Assets Liabilities + Equity Cash + Accounts + Office + + Office Accounts + L. Lopez, + Revenues - Expenses Office L. Lopez, Receivable Supplies Equipment Suite Payable Capital Withdrawals 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. Determine the company's net income. Assets Liabilities + Equity + Accounts Receivable + Supplies + Equipment Accounts + C. Taylor, C. Taylor, Cash + Revenues Expenses Payable Capital Withdrawals (1) $30,000 $30,000 (2) - 2,500 + $2,500 Bal. 27,500 + 2,500 30,000 + $26,000 + 26,000 (3) -26,000 Bal. 1,500 + 2,500 30,000 (4) + 7,100 +$7,100 Bal. 1,500 9,600 26,000 7,100 30,000 (5) + 4,200 + $4,200 Bal. 5,700 + 9,600 + 26,000 7,100 + 30,000 + 4,200 (6) 1,000 + $1,000 Bal. 4,700 9,600 26,000 7,100 30,000 4,200 - 1,000 + + + (7) 700 700 Bal. 4,000 + 9,600 26,000 7,100 30,000 + 4,200 1,700 (8) + $1,900 1,600 + 300 Bal. 4,000 + 1,900 9,600 26,000 7,100 30,000 6,100 1,700 (9) + 1,900 1,900 Bal. 5,900 + 9,600 + 26,000 7,100 30,000 + 6,100 1,700 (10) 900 900 Bal. 5,000 + + 9,600 + 26,000 6,200 30,000 + 6,100 1,700 (11) 200 $200 Bal. $ 4,800 + $ + $9,600 + $ 26,000 $ 6,200 + $ 30,000 $ 200 + $6,100 $ 1,700 +
a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company. b. The company purchased an office suite for $40,000 cash. c. The company purchased office equipment for $15,000 cash. d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit. e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening. f. The company completed a financial plan for a client and billed that client $2,800 for the service. g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee. h. Lita Lopez withdrew $3,275 cash from the company for personal use. i. The company received $1,800 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $1,800 cash for the office secretary's wages for this period. Required 1. Create the following table similar to the one in Exhibit Assets Liabilities + Equity Cash + Accounts + Office + + Office Accounts + L. Lopez, + Revenues - Expenses Office L. Lopez, Receivable Supplies Equipment Suite Payable Capital Withdrawals 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. Determine the company's net income. Assets Liabilities + Equity + Accounts Receivable + Supplies + Equipment Accounts + C. Taylor, C. Taylor, Cash + Revenues Expenses Payable Capital Withdrawals (1) $30,000 $30,000 (2) - 2,500 + $2,500 Bal. 27,500 + 2,500 30,000 + $26,000 + 26,000 (3) -26,000 Bal. 1,500 + 2,500 30,000 (4) + 7,100 +$7,100 Bal. 1,500 9,600 26,000 7,100 30,000 (5) + 4,200 + $4,200 Bal. 5,700 + 9,600 + 26,000 7,100 + 30,000 + 4,200 (6) 1,000 + $1,000 Bal. 4,700 9,600 26,000 7,100 30,000 4,200 - 1,000 + + + (7) 700 700 Bal. 4,000 + 9,600 26,000 7,100 30,000 + 4,200 1,700 (8) + $1,900 1,600 + 300 Bal. 4,000 + 1,900 9,600 26,000 7,100 30,000 6,100 1,700 (9) + 1,900 1,900 Bal. 5,900 + 9,600 + 26,000 7,100 30,000 + 6,100 1,700 (10) 900 900 Bal. 5,000 + + 9,600 + 26,000 6,200 30,000 + 6,100 1,700 (11) 200 $200 Bal. $ 4,800 + $ + $9,600 + $ 26,000 $ 6,200 + $ 30,000 $ 200 + $6,100 $ 1,700 +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
![a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
b. The company purchased an office suite for $40,000 cash.
c. The company purchased office equipment for $15,000 cash.
d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
f. The company completed a financial plan for a client and billed that client $2,800 for the service.
g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
h. Lita Lopez withdrew $3,275 cash from the company for personal use.
i. The company received $1,800 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.
k. The company paid $1,800 cash for the office secretary's wages for this period.
Required
1. Create the following table similar to the one in Exhibit
Assets
Liabilities +
Equity
Cash + Accounts +
Office +
+ Office
Accounts + L. Lopez,
+ Revenues - Expenses
Office
L. Lopez,
Receivable
Supplies
Equipment
Suite
Payable
Capital
Withdrawals
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. Determine the company's net income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee3ce216-21de-4271-9b24-7defefeb5ccf%2F3096d48c-3a69-49fd-9674-5416434c747c%2F8yiti6h_processed.png&w=3840&q=75)
Transcribed Image Text:a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
b. The company purchased an office suite for $40,000 cash.
c. The company purchased office equipment for $15,000 cash.
d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
f. The company completed a financial plan for a client and billed that client $2,800 for the service.
g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
h. Lita Lopez withdrew $3,275 cash from the company for personal use.
i. The company received $1,800 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.
k. The company paid $1,800 cash for the office secretary's wages for this period.
Required
1. Create the following table similar to the one in Exhibit
Assets
Liabilities +
Equity
Cash + Accounts +
Office +
+ Office
Accounts + L. Lopez,
+ Revenues - Expenses
Office
L. Lopez,
Receivable
Supplies
Equipment
Suite
Payable
Capital
Withdrawals
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. Determine the company's net income.
![Assets
Liabilities +
Equity
+ Accounts
Receivable
+ Supplies + Equipment
Accounts + C. Taylor,
C. Taylor,
Cash
+ Revenues
Expenses
Payable
Capital
Withdrawals
(1) $30,000
$30,000
(2) - 2,500
+ $2,500
Bal.
27,500
+
2,500
30,000
+ $26,000
+ 26,000
(3) -26,000
Bal.
1,500
+
2,500
30,000
(4)
+
7,100
+$7,100
Bal.
1,500
9,600
26,000
7,100
30,000
(5) + 4,200
+ $4,200
Bal.
5,700
+
9,600
+
26,000
7,100
+
30,000
+
4,200
(6)
1,000
+
$1,000
Bal.
4,700
9,600
26,000
7,100
30,000
4,200
- 1,000
+
+
+
(7)
700
700
Bal.
4,000
+
9,600
26,000
7,100
30,000
+
4,200
1,700
(8)
+ $1,900
1,600
+
300
Bal.
4,000 +
1,900
9,600
26,000
7,100
30,000
6,100
1,700
(9) + 1,900
1,900
Bal.
5,900 +
9,600
+
26,000
7,100
30,000
+
6,100
1,700
(10)
900
900
Bal.
5,000 +
+
9,600
+
26,000
6,200
30,000
+
6,100
1,700
(11)
200
$200
Bal. $ 4,800 + $
+ $9,600
+ $ 26,000
$ 6,200
+ $ 30,000
$ 200
+ $6,100
$ 1,700
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee3ce216-21de-4271-9b24-7defefeb5ccf%2F3096d48c-3a69-49fd-9674-5416434c747c%2F1jkhjom_processed.png&w=3840&q=75)
Transcribed Image Text:Assets
Liabilities +
Equity
+ Accounts
Receivable
+ Supplies + Equipment
Accounts + C. Taylor,
C. Taylor,
Cash
+ Revenues
Expenses
Payable
Capital
Withdrawals
(1) $30,000
$30,000
(2) - 2,500
+ $2,500
Bal.
27,500
+
2,500
30,000
+ $26,000
+ 26,000
(3) -26,000
Bal.
1,500
+
2,500
30,000
(4)
+
7,100
+$7,100
Bal.
1,500
9,600
26,000
7,100
30,000
(5) + 4,200
+ $4,200
Bal.
5,700
+
9,600
+
26,000
7,100
+
30,000
+
4,200
(6)
1,000
+
$1,000
Bal.
4,700
9,600
26,000
7,100
30,000
4,200
- 1,000
+
+
+
(7)
700
700
Bal.
4,000
+
9,600
26,000
7,100
30,000
+
4,200
1,700
(8)
+ $1,900
1,600
+
300
Bal.
4,000 +
1,900
9,600
26,000
7,100
30,000
6,100
1,700
(9) + 1,900
1,900
Bal.
5,900 +
9,600
+
26,000
7,100
30,000
+
6,100
1,700
(10)
900
900
Bal.
5,000 +
+
9,600
+
26,000
6,200
30,000
+
6,100
1,700
(11)
200
$200
Bal. $ 4,800 + $
+ $9,600
+ $ 26,000
$ 6,200
+ $ 30,000
$ 200
+ $6,100
$ 1,700
+
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