Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions: a.Owner invested $70,000 cash in the company along with equipment that had a $20,000 market value in exchange for common stock.b.The company paid $2,000 cash for rent of office space for the month.c.The company purchased $25,000 of additional equipment on credit (payment due within 30 days).d.The company completed work for a client and immediately collected the $3,000 cash earned.e.The company completed work for a client and sent a bill for $9,500 to be received within 30 days.f.The company purchased additional equipment for $5,000 cash.g.The company paid an assistant $3,500 cash as wages for the month.h.The company collected $6,500 cash as a partial payment for the amount owed by the client in transaction e.i.The company paid $25,000 cash to settle the liability created in transaction c.j.The company paid $1,500 cash dividends to the owner.

Name: Leora Diamond began a professional practice on June 1 and plans to pre
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Description: Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions: a.Owner invested $70,000 cash in the company along with equipment

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Answered: Leora Diamond began a professional…

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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Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions:

a.	Owner invested $70,000 cash in the company along with equipment that had a $20,000 market value in exchange for common stock.
b.	The company paid $2,000 cash for rent of office space for the month.
c.	The company purchased $25,000 of additional equipment on credit (payment due within 30 days).
d.	The company completed work for a client and immediately collected the $3,000 cash earned.
e.	The company completed work for a client and sent a bill for $9,500 to be received within 30 days.
f.	The company purchased additional equipment for $5,000 cash.
g.	The company paid an assistant $3,500 cash as wages for the month.
h.	The company collected $6,500 cash as a partial payment for the amount owed by the client in transaction e.
i.	The company paid $25,000 cash to settle the liability created in transaction c.
j.	The company paid $1,500 cash dividends to the owner.

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