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Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction

Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction

FINANCIAL ACCOUNTING
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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Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction

**Case Study** On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, organized as a corporation. It provides consulting services, computer system installations, and custom program development. **Transactions:** 1. **Oct. 1:** - S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2. **Oct. 2:** - The company purchased $1,420 of computer supplies on credit from Harris Office Products. 3. **Oct. 6:** - The company billed Easy Leasing $4,800 for services performed in installing a new web server. 4. **Oct. 8:** - The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 2. 5. **Oct. 10:** - The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 6. **Oct. 12:** - The company billed Easy Leasing another $1,600 for services performed. 7. **Oct. 15:** - The company received $4,800 cash from Easy Leasing as partial payment toward its account. 8. **Oct. 17:** - The company paid $875 cash to repair computer equipment damaged when moving it. 9. **Oct. 20:** - The company paid $1,728 cash for advertisements published in the local newspaper. 10. **Oct. 22:** - The company received $1,400 cash from Easy Leasing toward its account. 11. **Oct. 28:** - The company billed $3,000 for services performed for the city of Rivera. 12. **Oct. 31:** - The company paid $875 cash for Lyn Addie’s wages for seven days of work this month. - The company paid $3,500 cash in dividends to the owner (sole shareholder). **Requirement:** - Determine the amount of each transaction on individual items of the accounting equation. - Show new balances after each transaction. - (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.) **Displayed Table:** The table presents several columns grouped under assets, liabilities, and equity, tracking the
Transcribed Image Text:**Case Study** On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, organized as a corporation. It provides consulting services, computer system installations, and custom program development. **Transactions:** 1. **Oct. 1:** - S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2. **Oct. 2:** - The company purchased $1,420 of computer supplies on credit from Harris Office Products. 3. **Oct. 6:** - The company billed Easy Leasing $4,800 for services performed in installing a new web server. 4. **Oct. 8:** - The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 2. 5. **Oct. 10:** - The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 6. **Oct. 12:** - The company billed Easy Leasing another $1,600 for services performed. 7. **Oct. 15:** - The company received $4,800 cash from Easy Leasing as partial payment toward its account. 8. **Oct. 17:** - The company paid $875 cash to repair computer equipment damaged when moving it. 9. **Oct. 20:** - The company paid $1,728 cash for advertisements published in the local newspaper. 10. **Oct. 22:** - The company received $1,400 cash from Easy Leasing toward its account. 11. **Oct. 28:** - The company billed $3,000 for services performed for the city of Rivera. 12. **Oct. 31:** - The company paid $875 cash for Lyn Addie’s wages for seven days of work this month. - The company paid $3,500 cash in dividends to the owner (sole shareholder). **Requirement:** - Determine the amount of each transaction on individual items of the accounting equation. - Show new balances after each transaction. - (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.) **Displayed Table:** The table presents several columns grouped under assets, liabilities, and equity, tracking the
**Educational Website Transcription:** ### Accounting Transaction Entries Below is a detailed table displaying the effect of various transactions on individual items within the accounting equation. Each row demonstrates a transaction or balance date, showing changes to assets, liabilities, and equity. Negative values, indicating a decrease in account balances, are shown with a minus sign. Please study the flow of transactions over time: #### Table of Transactions - **Columns:** - **Date**: Shows the date of each transaction or balance (Bal.). - **Assets:** - **Cash** - **Accounts Receivable** - **Computer Supplies** - **Computer System** - **Office Equipment** - **Liabilities:** - **Accounts Payable** - **Equity:** - **Common Stock** - **Dividends** - **Rows:** - Entries from October 1 to October 17 indicate specific transactions: - **Oct. 1**: Initial cash amount is $45,000. - **Subsequent Dates**: Show changes in various asset and liability accounts. For example: - **Oct. 3**: No change from previous balance. - **Oct. 6**: Increase in Computer Supplies by $1,420. - **Oct. 8**: Increase in Computer Supplies by $4,800. - **Oct. 10**: Further increase in Computer Supplies by $6,220. - **Oct. 12**: Consistent balance with no changes. - **Oct. 15**: Shows balance maintenance. - **Oct. 17**: Cash remains stable at $45,000. This table should be used to understand how each transaction affects the accounting equation, keeping the principle of assets equaling liabilities plus equity evident throughout. Students can analyze how different business activities reflect in these core accounting elements.
Transcribed Image Text:**Educational Website Transcription:** ### Accounting Transaction Entries Below is a detailed table displaying the effect of various transactions on individual items within the accounting equation. Each row demonstrates a transaction or balance date, showing changes to assets, liabilities, and equity. Negative values, indicating a decrease in account balances, are shown with a minus sign. Please study the flow of transactions over time: #### Table of Transactions - **Columns:** - **Date**: Shows the date of each transaction or balance (Bal.). - **Assets:** - **Cash** - **Accounts Receivable** - **Computer Supplies** - **Computer System** - **Office Equipment** - **Liabilities:** - **Accounts Payable** - **Equity:** - **Common Stock** - **Dividends** - **Rows:** - Entries from October 1 to October 17 indicate specific transactions: - **Oct. 1**: Initial cash amount is $45,000. - **Subsequent Dates**: Show changes in various asset and liability accounts. For example: - **Oct. 3**: No change from previous balance. - **Oct. 6**: Increase in Computer Supplies by $1,420. - **Oct. 8**: Increase in Computer Supplies by $4,800. - **Oct. 10**: Further increase in Computer Supplies by $6,220. - **Oct. 12**: Consistent balance with no changes. - **Oct. 15**: Shows balance maintenance. - **Oct. 17**: Cash remains stable at $45,000. This table should be used to understand how each transaction affects the accounting equation, keeping the principle of assets equaling liabilities plus equity evident throughout. Students can analyze how different business activities reflect in these core accounting elements.
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