Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner Invested $68,000 cash in the company along with equipment that had a $29,000 market value. b. The company pald $2,100 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a clent and Immediately collected the $1,600 cash earned. e. The company completed work for a clent and sent a bill for $9,000 to be recelved within 30 days. f. The company purchased additional equipment for $6,100 cash. g. The company pald an assistant $3,000 cash as wages for the month. h. The company collected $5,300 cash as a partial payment for the amount owed by the client In transaction e. 1. The company pald $10,000 cash to settle the liability created in transaction c. J. Owner withdrew $1,100 cash from the company for personal use. Required: Enter the Impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a mlnus sign.) Assets - Liabilities + Equity Accounts Receivable M. Chen, Withdrawals Accounts + Equipment - M. Chen, Сapital Cash Revenues Expenses Payable b. Bal. O. Bal. d. Bal. Bal. f. Bal. g. Bal. h. Bal. i. Bal. J. Bal.
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner Invested $68,000 cash in the company along with equipment that had a $29,000 market value. b. The company pald $2,100 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a clent and Immediately collected the $1,600 cash earned. e. The company completed work for a clent and sent a bill for $9,000 to be recelved within 30 days. f. The company purchased additional equipment for $6,100 cash. g. The company pald an assistant $3,000 cash as wages for the month. h. The company collected $5,300 cash as a partial payment for the amount owed by the client In transaction e. 1. The company pald $10,000 cash to settle the liability created in transaction c. J. Owner withdrew $1,100 cash from the company for personal use. Required: Enter the Impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a mlnus sign.) Assets - Liabilities + Equity Accounts Receivable M. Chen, Withdrawals Accounts + Equipment - M. Chen, Сapital Cash Revenues Expenses Payable b. Bal. O. Bal. d. Bal. Bal. f. Bal. g. Bal. h. Bal. i. Bal. J. Bal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Ming Chen began a professlonal practice on June 1 and plans to prepare financial statements at the end of each month. During June,
Ming Chen (the owner) completed these transactions.
a. Owner Invested $68,000 cash in the company along with equipment that had a $29,000 market value.
b. The company pald $2,100 cash for rent of office space for the month.
C. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and Immediately collected the $1,600 cash earned.
e. The company completed work for a clent and sent a bill for $9,000 to be recelved within 30 days.
f. The company purchased additional equipment for $6,100 cash.
g. The company pald an assistant $3,000 cash as wages for the month.
h. The company collected $5,300 cash as a partial payment for the amount owed by the client In transaction e.
1. The company pald $10,000 cash to settle the lability created in transaction c.
J. Owner withdrew $1,100 cash from the company for personal use.
Requlred:
Enter the Impact of each transaction on Individual Items of the accounting equation. (Enter decreases to account balances with a
mlnus sign.)
Assets
Liabilities +
Equity
М. Chen,
M. Chen,
Сapital
Accounts
Accounts
Cash
+
Receivable
Equipment
Payable
Revenues
Expenses
Withdrawals
a.
b.
+
Bal.
+
C.
+
Bal.
+
d.
+
Bal.
+
e.
+
Bal.
+
f.
+
Bal.
+
9.
Bal.
%3D
h.
Bal.
+
i.
Bal.
+
Bal.
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