Please answer with explanation of each transaction Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $62,000 cash and office equipment valued at $39,000 in the company in exchange for its common stock. b. The company purchased an office suite for $47,000 cash. c. The company purchased office equipment for $5,500 cash. d. The company purchased $3,700 of office supplies and $1,600 of office equipment on credit. e. The company paid a local newspaper $920 cash for printing an announcement of the office’s opening. f. The company completed a financial plan for a client and billed that client $4,100 for the service. g. The company designed a financial plan for another client and immediately collected an $8,600 cash fee. h. The company paid $1,200 cash in dividends to the owner (sole shareholder). i. The company received $3,100 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $800 cash on the equipment purchased in transaction d. k. The company paid $2,400 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. (Enter decreases to account balance with a minus sign.) 2. Determine the company's net income.
Please answer with explanation of each transaction
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
a. Lita Lopez invested $62,000 cash and office equipment valued at $39,000 in the company in exchange for its common stock.
b. The company purchased an office suite for $47,000 cash.
c. The company purchased office equipment for $5,500 cash.
d. The company purchased $3,700 of office supplies and $1,600 of office equipment on credit.
e. The company paid a local newspaper $920 cash for printing an announcement of the office’s opening.
f. The company completed a financial plan for a client and billed that client $4,100 for the service.
g. The company designed a financial plan for another client and immediately collected an $8,600 cash fee.
h. The company paid $1,200 cash in dividends to the owner (sole shareholder).
i. The company received $3,100 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $800 cash on the equipment purchased in transaction d.
k. The company paid $2,400 cash for the office 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.
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