Exercise 1-24 Effects of transactions on the accounting equation LO6, 7 excel CHECK FIGURE: Natalie Gold, Capital, July 31, 2020 = $11,550 Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consulting services, such as online marketing campaigns and blog services. The June transactions for Vivid Voice resulted in totals at June 30, 2020, as shown in the following accounting equation format: Assets Cash + Accounts Receivable + Supplies + Equipment $6,000 + $1,200 + $1,900 + $6,500 = Liabilities Equity Accounts Payable + $4,000 Natalie Gold, Capital Explanation of Equity Tra $11,600 During July, the following occurred: a. Collected $800 from a credit customer. b. Paid $2,500 for equipment purchased on account in June. c. Did work for a client and collected cash; $1,100. d. Paid a part-time consultant's wages; $950. e. Paid the July rent; $1,200. f. Paid the July utilities; $600. g. Performed services for a customer on credit; $1,600. h. Called an information technology consultant to fix the agency's photo editing software in August; it will cost $350. Using the format provided above, show the effects of the activities listed in (a) through (h). For each transaction that affects equity, include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
Exercise 1-24 Effects of transactions on the accounting equation LO6, 7 excel CHECK FIGURE: Natalie Gold, Capital, July 31, 2020 = $11,550 Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consulting services, such as online marketing campaigns and blog services. The June transactions for Vivid Voice resulted in totals at June 30, 2020, as shown in the following accounting equation format: Assets Cash + Accounts Receivable + Supplies + Equipment $6,000 + $1,200 + $1,900 + $6,500 = Liabilities Equity Accounts Payable + $4,000 Natalie Gold, Capital Explanation of Equity Tra $11,600 During July, the following occurred: a. Collected $800 from a credit customer. b. Paid $2,500 for equipment purchased on account in June. c. Did work for a client and collected cash; $1,100. d. Paid a part-time consultant's wages; $950. e. Paid the July rent; $1,200. f. Paid the July utilities; $600. g. Performed services for a customer on credit; $1,600. h. Called an information technology consultant to fix the agency's photo editing software in August; it will cost $350. Using the format provided above, show the effects of the activities listed in (a) through (h). For each transaction that affects equity, include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 6.6APR
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Transcribed Image Text:Exercise 1-24 Effects of transactions on the accounting equation LO6, 7 excel
CHECK FIGURE: Natalie Gold, Capital, July 31, 2020 = $11,550
Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consulting services, such as online
marketing campaigns and blog services. The June transactions for Vivid Voice resulted in totals at June 30, 2020, as shown in the
following accounting equation format:
Assets
Cash + Accounts Receivable + Supplies + Equipment
$6,000 +
$1,200
+ $1,900 + $6,500
=
Liabilities
Equity
Accounts Payable +
$4,000
Natalie Gold, Capital Explanation of Equity Tra
$11,600
During July, the following occurred:
a. Collected $800 from a credit customer.
b. Paid $2,500 for equipment purchased on account in June.
c. Did work for a client and collected cash; $1,100.
d. Paid a part-time consultant's wages; $950.
e. Paid the July rent; $1,200.
f. Paid the July utilities; $600.
g. Performed services for a customer on credit; $1,600.
h. Called an information technology consultant to fix the agency's photo editing software in August; it will cost $350.
Using the format provided above, show the effects of the activities listed in (a) through (h). For each transaction that affects equity,
include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
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