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Exercise 1-13 ldentifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $61,000 cash in the company along with equipment that had a $13,000 market value in exchange for its common stock. b. The company paid $3,000 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 the $1,600 cash earned. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. f. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $2,000 cash as wages for the month. h. The company collected $5,700 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 $1,400 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Equity Assets Liabilities Accounts Receivable Accounts Common Stock Dividends Expenses Cash Equipment Revenues Payable a. b. %3D Bal. C. Bl, d. Bal. e. Bal. f. Bl, g. %3D Bal. h. Bl. ++ +

Exercise 1-13 ldentifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $61,000 cash in the company along with equipment that had a $13,000 market value in exchange for its common stock. b. The company paid $3,000 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 the $1,600 cash earned. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. f. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $2,000 cash as wages for the month. h. The company collected $5,700 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 $1,400 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Equity Assets Liabilities Accounts Receivable Accounts Common Stock Dividends Expenses Cash Equipment Revenues Payable a. b. %3D Bal. C. Bl, d. Bal. e. Bal. f. Bl, g. %3D Bal. h. Bl. ++ +

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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Exercise 1-13 ldentifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $61,000 cash in the company along with equipment that had a $13,000 market value in exchange for its common stock. b. The company paid $3,000 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 the $1,600 cash earned. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. f. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $2,000 cash as wages for the month. h. The company collected $5,700 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 $1,400 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Equity Assets Liabilities Accounts Receivable Accounts Common Stock Dividends Expenses Cash Equipment Revenues Payable a. b. %3D Bal. C. Bl, d. Bal. e. Bal. f. Bl, g. %3D Bal. h. Bl. ++ +
Transcribed Image Text:Exercise 1-13 ldentifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $61,000 cash in the company along with equipment that had a $13,000 market value in exchange for its common stock. b. The company paid $3,000 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 the $1,600 cash earned. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. f. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $2,000 cash as wages for the month. h. The company collected $5,700 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 $1,400 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Equity Assets Liabilities Accounts Receivable Accounts Common Stock Dividends Expenses Cash Equipment Revenues Payable a. b. %3D Bal. C. Bl, d. Bal. e. Bal. f. Bl, g. %3D Bal. h. Bl. ++ +
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