Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of ope a. Lita Lopez invested $63,000 cash and equipment valued at $39,000 in the company. b. The company purchased a building for $48,000 cash. c. The company purchased equipment for $5,800 cash. d. The company purchased $3,500 of supplies and $1,700 of equipment on credit. e. The company paid $850 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,200 for the service. g. The company designed a financial plan for another client and immediately collected a $8,700 cash fee. h. L. Lopez withdrew $1,300 cash from the company for personal use. 1. The company received $3,200 cash as partial payment from the client described in transaction f. J. The company made a partial payment of $850 cash on the equipment purchased in transaction d. k. The company paid $2,200 cash for the secretary's wages for this period. equired: 1. Enter the amount of each transaction on individual items of the accounting equation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
a. Lita Lopez invested $63,000 cash and equipment valued at $39,000 in the company.
b. The company purchased a building for $48,000 cash.
c. The company purchased equipment for $5,800 cash.
d. The company purchased $3,500 of supplies and $1,700 of equipment on credit.
e. The company paid $850 cash for advertising expenses.
f. The company completed a financial plan for a client and billed that client $4,200 for the service.
g. The company designed a financial plan for another client and immediately collected a $8,700 cash fee.
h. L. Lopez withdrew $1,300 cash from the company for personal use.
1. The company received $3,200 cash as partial payment from the client described in transaction f.
J. The company made a partial payment of $850 cash on the equipment purchased in transaction d.
k. The company paid $2,200 cash for the secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
2. Determine the company's net income.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Enter the amount of each transaction on individual items of the accounting equation.
Note: Reductions in account balances should be indicated with a minus sign.
Cash
Accounts
Receivable
Assets
Supplies
+
Equipment
+
Building
Liabilities
Accounts
Payable
+
f
L. Lopez
Capita
Transcribed Image Text:Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $63,000 cash and equipment valued at $39,000 in the company. b. The company purchased a building for $48,000 cash. c. The company purchased equipment for $5,800 cash. d. The company purchased $3,500 of supplies and $1,700 of equipment on credit. e. The company paid $850 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,200 for the service. g. The company designed a financial plan for another client and immediately collected a $8,700 cash fee. h. L. Lopez withdrew $1,300 cash from the company for personal use. 1. The company received $3,200 cash as partial payment from the client described in transaction f. J. The company made a partial payment of $850 cash on the equipment purchased in transaction d. k. The company paid $2,200 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Enter the amount of each transaction on individual items of the accounting equation. Note: Reductions in account balances should be indicated with a minus sign. Cash Accounts Receivable Assets Supplies + Equipment + Building Liabilities Accounts Payable + f L. Lopez Capita
d. The company purchased $3,500 of supplies and $1,700 of equipment on credit.
e. The company paid $850 cash for advertising expenses.
f. The company completed a financial plan for a client and billed that cllent $4,200 for the service.
The company designed a financial plan for another client and Immediately collected a $8,700 cash fee.
h. L. Lopez withdrew $1,300 cash from the company for personal use.
1. The company received $3,200 cash as partial payment from the client described in transaction f.
J. The company made a partial payment of $850 cash on the equipment purchased in transaction d.
k. The company paid $2,200 cash for the secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
2. Determine the company's net income.
Complete this question by entering your answers in the tabs below.
C.
Required 1 Required 2
Enter the amount of each transaction on individual items of the accounting equation.
Note: Reductions in account balances should be indicated with a minus sign.
a.
b.
Balance after a and b
Balance after c
Cash
+
+
+
+
+
Accounts
Receivable
+
+
+
+
+
Assets
Supplies
+
+
+
+
+
+
Equipment
+
+
+
+
Building
11
11
Liabilitles
Accounts
Payable
+
+
+
+
L. Lopez,
Capital
1
Equ
L. Lopez,
Withdrawals
Transcribed Image Text:d. The company purchased $3,500 of supplies and $1,700 of equipment on credit. e. The company paid $850 cash for advertising expenses. f. The company completed a financial plan for a client and billed that cllent $4,200 for the service. The company designed a financial plan for another client and Immediately collected a $8,700 cash fee. h. L. Lopez withdrew $1,300 cash from the company for personal use. 1. The company received $3,200 cash as partial payment from the client described in transaction f. J. The company made a partial payment of $850 cash on the equipment purchased in transaction d. k. The company paid $2,200 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. C. Required 1 Required 2 Enter the amount of each transaction on individual items of the accounting equation. Note: Reductions in account balances should be indicated with a minus sign. a. b. Balance after a and b Balance after c Cash + + + + + Accounts Receivable + + + + + Assets Supplies + + + + + + Equipment + + + + Building 11 11 Liabilitles Accounts Payable + + + + L. Lopez, Capital 1 Equ L. Lopez, Withdrawals
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