Answered: Assets Liabilities + Stockholders'…

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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Question

Goal Systems, a business consulting firm, engaged in the following transactions:
a. Issued common stock for $75,000 cash.
b. Borrowed $35,000 from a bank.
c. Purchased equipment for $12,000 cash.
d. Prepaid rent on office space for 6 months in the amount of $7,800.
e. Performed consulting services in exchange for $6,300 cash.
f. Performed consulting services on credit in the amount of $18,750.
g. Incurred and paid wage expense of $9,500.
h. Collected $10,200 of the receivable arising from Transaction f.
i. Purchased supplies for $1,800 on credit.
j. Used $1,200 of the supplies purchased in Transaction i.
k. Paid for all of the supplies purchased in Transaction i.
Required:
For each transaction described above, indicate the effects on assets, liabilities, and stockholders’
equity using the format below.

Assets
Liabilities +
Stockholders' Equity
%3D
Contributed
+
Retained
Capial
Eamings

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