Based on the following transactions, complete the table shown below.2:0a. The business issued shares to shareholders for $100,000.b. Performed consulting services today and collected $100.C. A client rented equipment for $1,300 cash.pred. Holden Corp. purchased new equipment by paying $2,500 cash.e. One of Holden Corp.'s clients rented equipment today for $1,500 on credit.f. Holden Corp. purchased $2,250 of equipment on credit.g. Holden Corp. performed consulting services for a customer and received $5,000.h. Furniture was rented by a customer for $1,400 on credit.i. Holden Corp. used credit to purchase $3,250 of equipment.j. Holden Corp. paid dividends of $1,600 to the shareholders.re:prere:To complete the table shown below, identify the headings for each column by clicking on theappropriate cell and making a selection. Use additions (+ sign) and subtractions (- sign) to showre:the transactions' effects on the elements of the equation. Show new totals after each transaction(no + or- sign is required for totals). Also indicate next to each change in equity (in the explanationre:column) whether it was caused by the issuance of share capital (investment), a revenue, anexpense or payment of dividends. Identify revenues and expenses by name. If a transaction doesnot affect equity, no explanation is required.2:0 Do not leave any balances blank, unless the balance is zero.Assets= LiabilitiesEquity+Share Capital+Retained EarningsExplanation2:0(a)(b)Bal.pre:(c)Del

The accounting equation states that assets equal to sum of liabilities and equity.

Answered: ased on the following transactions,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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! Required information Use the following information for Exercises 13-14 below. (Algo) [The following information applies to the questions displayed below.] The transactions of Spade Company appear below. a. K. Spade, owner, invested $17,750 cash in the company in exchange for common stock. b. The company purchased supplies for $515 cash. c. The company purchased $9,816 of equipment on credit. d. The company received $2,095 cash for services provided to a customer. e. The company paid $9,816 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $3,763 for services provided. g. The company paid $525 cash for the monthly rent. h. The company collected $1,580 cash as partial payment for the account receivable created in transaction f i. The company paid a $1,200 cash dividend to the owner (sole shareholder). Exercise 2-14 (Algo) Preparing a trial balance LO P1 Prepare the Trial Balance. Use May 31 as its report date. Note: Hint: Accounts…
Warren Enterprises had the following events during Year 1: The business issued $26,000 of common stock to its stockholders. The business purchased land for $18,000 cash. Services were provided to customers for $22,000 cash. Services were provided to customers for $11,000 on account. The company borrowed $22,000 from the bank. Operating expenses of $18,000 were incurred and paid in cash. Salary expense of $1,400 was accrued. A dividend of $10,000 was paid to the stockholders of Warren Enterprises. Assuming the company began operations during Year 1, what is the amount of retained earnings as of December 31, Year 1?
Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts. Cash $ 10,200 Cash dividends $ 2,340 Accounts receivable 15,200 Consulting revenue 15,200 Office supplies 3,550 Rent expense 3,910 Office equipment 18,310 Salaries expense 7,350 Land 45,990 Telephone expense 790 Accounts payable 8,740 Miscellaneous expenses 610 Common stock 84,310 Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0.
: Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting equation. 1- The company issued ordinary shares for $10,000 cash. 2- The company purchased $5,000 of office equipment on account. 3. The company received $15,000 cash in exchange for services performed. 4. The company paid $500 for this month's rent. 5- The company paid a dividend of $1,500 in cash to shareholder
You are the bookkeeper for Harley Inc., a newly formed corporation. Harley had the following transactions for their business: * Four shareholders contributed $40,000 ($10,000 each) in exchange for Harley common stock. * Harley purchased inventory for $5,000. Harley received an invoice for the inventory that is due in 30 days. What are the effects on Harley's accounting equation? A B D Based on the two transactions, Assets increased by $40,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $45,000. Based on the two transactions, Assets increased by $45,000, Liabilities increased by $5,000 and Shareholder Equity increased by $40,000. C Based on the two transactions, Assets increased by $15,000, Liabilities increased by $5,000 and Shareholder Equity increased by $10,000. Based on the two transactions, Assets increased by $35,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $40,000.
Required Information [The following information applies to the questions displayed below] The transactions of Spade Company appear below. a. K. Spade, owner, Invested $18,000 cash in the company in exchange for common stock. b. The company purchased supplies for $522 cash. c. The company purchased $9,954 of equipment on credit. d. The company received $2,124 cash for services provided to a customer. e. The company paid $9,954 cash to settle the payable for the equipment purchased in transaction c. 1. The company billed a customer $3,816 for services provided. g. The company paid $510 cash for the monthly rent. h. The company collected $1,603 cash as partial payment for the account receivable created in transaction f 1. The company paid a $1,100 cash dividend to the owner (sole shareholder). Prepare the Trial Balance, Use May 31 as its report date. (Hint: Accounts must be listed in financial statement order: Assets first, followed by liabilities, equity, revenues and expenses.)
Required information [The following information applies to the questions displayed below.] The transactions of Spade Company appear below. a. K. Spade, owner, invested $19,750 cash in the company in exchange for common stock. b. The company purchased supplies for $573 cash. c. The company purchased $10,922 of equipment on credit. d. The company received $2,331 cash for services provided to a customer. e. The company paid $10,922 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $4,187 for services provided. g. The company paid $510 cash for the monthly rent. h. The company collected $1,759 cash as partial payment for the account receivable created in transaction f. i. The company paid a $1,100 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions of Spade Company by using the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Common…
Selected transactions for Concord Corporation during its first month in business are presented below. Sept. 1 Issued common stock in exchange for $18,200 cash received from investors. 5 Purchased equipment for $8,670, paying $2,550 in cash and the balance on account. 8 Performed services on account for $19,700. 14 Paid salaries of $2,900. 25 Paid $2,900 cash on balance owed for equipment. 30 Paid $520 cash dividend. Complete a tabular analysis of the September transactions. For transactions affecting stockholders’ equity, provide explanations in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.)
Presented below are a number of economic events. 1. Purchased supplies on account, $200. 2. Provided a service on account, $560. 3. Paid salaries expense, $340. 4. Issued common shares in exchange for cash, $7,000. 5. Declared and paid $140 of dividends to shareholders. 6. Received cash from a customer who had previously been billed for services provided, $560 (see item 2). 7. Paid account owed to supplier on account, $200 (see item 1). 8. Paid for insurance in advance, $180. 9. Received cash in advance from a customer for services to be performed in the future, $350. 10. Performed the service that the customer previously paid for (see item 9). Journalize the transactions given above for Crane Corp. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected $41,800 of the amount billed. Lee incurred $37,700 of other operating expenses on account. Lee paid $24,100 of the accounts payable. Lee acquired $39,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement?b. What amount of cash flow from revenue will be reported on the statement of cash flows?c. What is the net income for the period?d. What is the net cash flow from operating activities for the period?f. What is the amount of net cash flow from investing activities?g. What is the amount of net cash flow from financing activities?h. What…
The following events apply to Pearson Service Co. for Year 1, its first year of operation: Received cash of $50,000 from the issue of common stock. Performed $90,000 worth of services on account. Paid $64,000 cash for salaries expense. Purchased supplies for $12,000 on account. Collected $78,000 of accounts receivable. Paid $8,500 of the accounts payable. Paid a $5,000 dividend to the stockholders. Had $1,500 of supplies on hand at the end of the period. Required Record these events in general journal form. Post the entries to T-accounts and determine the ending balance in each account. Determine the amount of total assets at the end of Year 1. Determine the amount of net income for Year 1.
Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,650 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. $ 15,200 Cash dividends 12,410 Consulting revenue 1,770 Rent expense 16,450 Salaries expense 46,080 Telephone expense 6,060 Miscellaneous expenses 82,650 Cash $ 460 Accounts receivable Office supplies Office equipment 12,410 2,140 5,300 Land 750 Accounts payable 560 Common stock Also assume the following: a. The owner's initial investment consists of $36,570 cash and $46,080 in land in exchange for its common stock. b. The company's $16,450 equipment purchase is paid in cash. c. Cash paid to employees is $1,010. The accounts payable balance of $6,060 consists of the $1,770 office supplies purchase and $4,290 in employee salaries yet to be paid. d. The…

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