Exercise 1-15 (Algo) Identifying effects of transactions using the accounting equation LO P1 Ming Chen started a business and had the following transactions in June. a. Owner invested $57,000 cash in the company along with $27,000 of equipment in exchange for its common stock. b. The company paid $2,500 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected $2,400 cash. e. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. f. The company purchased additional equipment for $6,900 cash. g. The company paid an assistant $3,700 cash as wages for the month. h. The company collected $4,800 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $18,000 cash to settle the liability created in transaction c j. The company paid $1,800 cash in dividends to the owner (sole shareholder). Required: Complete the table using additions and subtractions to show the dollar effects c the transactions on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign.)
Exercise 1-15 (Algo) Identifying effects of transactions using the accounting equation LO P1 Ming Chen started a business and had the following transactions in June. a. Owner invested $57,000 cash in the company along with $27,000 of equipment in exchange for its common stock. b. The company paid $2,500 cash for rent of office space for the month. c. The company purchased $18,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected $2,400 cash. e. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. f. The company purchased additional equipment for $6,900 cash. g. The company paid an assistant $3,700 cash as wages for the month. h. The company collected $4,800 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $18,000 cash to settle the liability created in transaction c j. The company paid $1,800 cash in dividends to the owner (sole shareholder). Required: Complete the table using additions and subtractions to show the dollar effects c the transactions on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 1-15 (Algo) Identifying effects of transactions using
the accounting equation LO P1
Ming Chen started a business and had the following transactions in June.
a. Owner invested $57,000 cash in the company along with $27,000 of
equipment in exchange for its common stock.
b. The company paid $2,500 cash for rent of office space for the month.
c. The company purchased $18,000 of additional equipment on credit (payment
due within 30 days).
d. The company completed work for a client and immediately collected $2,400
cash.
e. The company completed work for a client and sent a bill for $9,000 to be
received within 30 days.
f. The company purchased additional equipment for $6,900 cash.
g. The company paid an assistant $3,700 cash as wages for the month.
h. The company collected $4,800 cash as a partial payment for the amount
owed by the client in transaction e.
i. The company paid $18,000 cash to settle the liability created in transaction c.
j. The company paid $1,800 cash in dividends to the owner (sole shareholder).
Required:
Complete the table using additions and subtractions to show the dollar effects of
the transactions on individual items of the accounting equation. Show new
balances after each transaction. (Enter decreases to account balances with a
minus sign.)
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