Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $64,000 cash and office equipment valued at $35,000 in the company. b. The company purchased an office suite for $44,000 cash. c. The company purchased office equipment for $5,800 cash. d. The company purchased $3,400 of office supplies and $1,900 of office equipment on credit. e. The company paid a local newspaper $860 cash for printing an announcement of the office's opening. 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 $8,200 cash fee. h. Lita Lopez withdrew $1,200 cash from the company for personal use. i. The company received $3,200 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $950 cash on the equipment purchased in transaction d. k. The company paid $1,700 cash for the office secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $64,000 cash and office equipment valued at $35,000 in the company. b. The company purchased an office suite for $44,000 cash. c. The company purchased office equipment for $5,800 cash. d. The company purchased $3,400 of office supplies and $1,900 of office equipment on credit. e. The company paid a local newspaper $860 cash for printing an announcement of the office's opening. 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 $8,200 cash fee. h. Lita Lopez withdrew $1,200 cash from the company for personal use. i. The company received $3,200 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $950 cash on the equipment purchased in transaction d. k. The company paid $1,700 cash for the office secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 4.4C
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Transcribed Image Text:**Transcription for Educational Website**
The image presents a comprehensive accounting worksheet organized into rows and columns. This worksheet is useful for tracking various financial transactions and balances in a structured manner. Here's a detailed breakdown:
### Structure of the Worksheet:
#### Columns:
1. **Cash (Assets)**
2. **Accounts Receivable (Assets)**
3. **Office Supplies (Assets)**
4. **Office Equipment (Assets)**
5. **OfficeSuite (Assets)**
6. **Accounts Payable (Liabilities)**
7. **L. Lopez Capital (Equity)**
8. **L. Lopez Withdrawals (Equity)**
9. **Revenues (Equity)**
10. **Expenses (Equity)**
#### Rows:
- **Opening 'Bal.' row** - Representing Balances with multiple entries per transaction
- **Subtotal row (at the bottom)** - Summarizes the totals of each column
#### Detailed Explanation:
- Each cell within the columns can hold numerical values that represent the amount for each category (assets, liabilities, equity).
- The 'Bal.' entry on the opening row indicates where beginning balances can be recorded for each respective account.
- Throughout the rows, transactions can be logged appropriately under the corresponding heading.
- At the bottom of the table, a summation row gives a quick overview of the total balances in each category to ensure the accounting equation (Assets = Liabilities + Equity) holds true.
**Note**: Each cell is denoted with a placeholder (e.g. `0`) indicating that no data has been entered for these fields.
This type of worksheet is essential for students learning basic accounting principles as it provides a clear and organized method to manage financial records and ensure accuracy in reporting.
Transcribed Image Text:**Problem 1-8A Analyzing Effects of Transactions LO P1, A1**
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
a. Lita Lopez invested $64,000 cash and office equipment valued at $35,000 in the company.
b. The company purchased an office site for $44,000 cash.
c. The company purchased office equipment for $5,800 cash.
d. The company purchased $3,400 of office supplies and $1,900 of office equipment on credit.
e. The company paid a local newspaper $860 cash for printing an announcement of the office’s opening.
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 $8,200 cash fee.
h. Lita Lopez withdrew $1,200 cash from the company for personal use.
i. The company returned $3,200 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $950 cash on the equipment purchased in transaction d.
k. The company paid $1,700 cash for the office secretary’s wages for this period.
**Required:**
1. Enter the amount of each transaction on individual items of the accounting equation. (*Reductions in account balances should be indicated with a minus sign.*)
**Explanation:**
For the purpose of analyzing the effects of these transactions, it is important to understand how each transaction impacts the accounting equation, which is:
**Assets = Liabilities + Owner’s Equity**
- **Transaction (a)**: Owner's equity increases by $99,000 (Cash $64,000 + Office Equipment $35,000).
- **Transaction (b)**: Cash decreases by $44,000 and Office Site (Asset) increases by $44,000.
- **Transaction (c)**: Cash decreases by $5,800 and Office Equipment (Asset) increases by $5,800.
- **Transaction (d)**: Office Supplies (Asset) increase by $3,400, Office Equipment (Asset) increase by $1,900, and Accounts Payable (Liability) increase by $5,300.
- **Transaction (e)**: Cash decreases by $860 and Expenses increase by $860.
- **Transaction (f)**: Accounts Receivable (
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