Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in accounting equation format): Assets = Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Office Equip. + Electrical Equip. = Accounts Payable + Larry Power, Capital $35,000 + $7,500 + $2,400 + $33,000 + $16,500 = $23,000 + $71,400 During November, the following occurred: Nov. 1 Rented office space and paid cash for the month’s rent of $7,700. 3 Purchased electrical equipment for $23,000 from an electrician who was going out of business, by using $12,500 in personal funds and agreeing to pay the balance in 30 days. 5 Purchased office supplies by paying $2,300 cash. 6 Completed electrical work and immediately collected $2,500 for doing the work. 8 Purchased $5,700 of office equipment on credit. 15 Completed electrical work on credit in the amount of $6,500. 16 Interviewed and hired a part-time electrician who will be paid $5,800 each month. He will begin work in three weeks. 18 Purchased $1,500 of office supplies on credit. 20 Paid for the office equipment purchased on November 8. 24 Billed a client $5,050 for electrical work; the balance is due in 30 days. 28 Received $6,500 for the work completed on November 15. 30 Paid the office assistant’s salary of $4,900. 30 Paid the monthly utility bills of $4,100. 30 Power withdrew $1,900 from the business for personal use.

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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Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in accounting equation format):

Assets

Liabilities

Equity

Cash

Accounts Receivable

Office Supplies

Office Equip.

Electrical Equip.

Accounts Payable

Larry Power, Capital

$35,000

$7,500

$2,400

$33,000

$16,500

$23,000

$71,400

During November, the following occurred:

Nov.	1	Rented office space and paid cash for the month’s rent of $7,700.
	3	Purchased electrical equipment for $23,000 from an electrician who was going out of business, by using $12,500 in personal funds and agreeing to pay the balance in 30 days.
	5	Purchased office supplies by paying $2,300 cash.
	6	Completed electrical work and immediately collected $2,500 for doing the work.
	8	Purchased $5,700 of office equipment on credit.
	15	Completed electrical work on credit in the amount of $6,500.
	16	Interviewed and hired a part-time electrician who will be paid $5,800 each month. He will begin work in three weeks.
	18	Purchased $1,500 of office supplies on credit.
	20	Paid for the office equipment purchased on November 8.
	24	Billed a client $5,050 for electrical work; the balance is due in 30 days.
	28	Received $6,500 for the work completed on November 15.
	30	Paid the office assistant’s salary of $4,900.
	30	Paid the monthly utility bills of $4,100.
	30	Power withdrew $1,900 from the business for personal use.

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