Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. Lita Lopez invested $67,000 cash and equipment valued at $35,000 in the company in exchange for its common stock. The company purchased a building for $45,000 cash. The company purchased equipment for $5,500 cash. The company purchased $3,800 of supplies and $1,500 of equipment on credit. The company paid $880 cash for advertising expenses. The company completed a financial plan for a client and billed that client $4,500 for the service. The company designed a financial plan for another client and immediately collected a $8,300 cash fee. The company paid $1,500 cash in dividends to the owner (sole shareholder). The company received $3,500 cash as partial payment from the client described in transaction f. The company made a partial payment of $750 cash on the equipment purchased in transaction d. The company paid $1,700 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.
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. Lita Lopez invested $67,000 cash and equipment valued at $35,000 in the company in exchange for its common stock. The company purchased a building for $45,000 cash. The company purchased equipment for $5,500 cash. The company purchased $3,800 of supplies and $1,500 of equipment on credit. The company paid $880 cash for advertising expenses. The company completed a financial plan for a client and billed that client $4,500 for the service. The company designed a financial plan for another client and immediately collected a $8,300 cash fee. The company paid $1,500 cash in dividends to the owner (sole shareholder). The company received $3,500 cash as partial payment from the client described in transaction f. The company made a partial payment of $750 cash on the equipment purchased in transaction d. The company paid $1,700 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
Lita Lopez invested $67,000 cash and equipment valued at $35,000 in the company in exchange for its
common stock.
The company purchased a building for $45,000 cash.
The company purchased equipment for $5,500 cash.
The company purchased $3,800 of supplies and $1,500 of equipment on credit.
The company paid $880 cash for advertising expenses.
The company completed a financial plan for a client and billed that client $4,500 for the service.
The company designed a financial plan for another client and immediately collected a $8,300 cash fee.
The company paid $1,500 cash in dividends to the owner (sole shareholder).
The company received $3,500 cash as partial payment from the client described in transaction f.
The company made a partial payment of $750 cash on the equipment purchased in transaction d.
The company paid $1,700 cash for the secretary’s wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the
2. Determine the company's net income.
Please avoid image based answers
Transcribed Image Text:Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
a.
b.
Balance after a and b
C.
Balance after c
d.
Required 1 Required 2
Balance after d
le.
Balance after e
f.
Balance after f
g.
Balance after g
h.
Balance after h
i.
Balance after i
Balance after j
k.
Balance after k
Cash
$ 67.000 +
45,000 +
112,000 +
www.
$
+
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
+
112,000 +
Accounts
Receivable
$
+
+
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
Assets
Supplies + Equipment + Building
$ 35,000 +
$
+
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
0 +
+
0 +
+
0 +
$
+
35,000 +
+
35,000 +
+
35,000 +
+
35,000 +
+
35,000 +
+
35,000 +
+
35,000+
+
35,000 +
+
35,000 +
+
35,000 +
$
=
0 =
0 =
0 =
0 =
=
0 =
0 =
0 =
=
0 =
=
0 =
0 =
Liabilities
Accounts
Payable
$
+
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
Common
Stock
$ 102,000
102,000 -
102,000
102,000
102,000
102,000
102,000 -
102,000
102,000
102,000 -
$ 102,000
Equity
Dividends +
$
+
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
+
0 +
Revenues
$
0
0-
0
0
0
0
-
0
-
0
-
-
0 -
-
-
-
-
0 -
Expenses
$
0
0
0
0
0
0
0
0
0
0
Transcribed Image Text:Required 1 Required 2
Determine the company's net income.
Net income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education