Question2. : Nova communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: ASSETS Land + LIABILITIES Note Payable+ Owner's equity M.Sajad Capital Building + Office Equipment= $51,250 Account Payable+ $28,250 Cash + Balances $37,000 $95,000 $125,000 $80,000 $200,000 (a) Early in January, the following transactions were carried out by nova communication: 1. Msaljad, the owner, deposited $25,000 of personal funds into the business's bank account. 2. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500. 3. Bought several computer systems on credit for $8,500(30 day open account) 4. Obtained a loan from capital bank in the amount of $10,000.signed a note payable. 5. Paid the $28,250 account payable owed as of December 31. Instruction: a. List the December 31 balances of asset, liabilities and owner's equity in tabular from shown b. Record the effects of each of the each of the five transactions in the format illustrated on page 53.show totals for all columns after each transaction.
Question2. : Nova communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: ASSETS Land + LIABILITIES Note Payable+ Owner's equity M.Sajad Capital Building + Office Equipment= $51,250 Account Payable+ $28,250 Cash + Balances $37,000 $95,000 $125,000 $80,000 $200,000 (a) Early in January, the following transactions were carried out by nova communication: 1. Msaljad, the owner, deposited $25,000 of personal funds into the business's bank account. 2. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500. 3. Bought several computer systems on credit for $8,500(30 day open account) 4. Obtained a loan from capital bank in the amount of $10,000.signed a note payable. 5. Paid the $28,250 account payable owed as of December 31. Instruction: a. List the December 31 balances of asset, liabilities and owner's equity in tabular from shown b. Record the effects of each of the each of the five transactions in the format illustrated on page 53.show totals for all columns after each transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Write answers to the instructions provided in the image.
Transcribed Image Text:Question2. : Nova communications was organized on December 1 of the current year and had the following account
balances at December 31, listed in tabular form:
ASSETS
LIABILITIES
Owner's equity
Building +
Office
Note Payable+
M.Saijad Capital
Cash +
Land +
Account
Equipment=
Payable+
Balances
$37,000
$95,000
$125,000
$51,250
$80,000
$28,250
$200,000
(a)
Early in January, the following transactions were carried out by nova communication:
1. Msaijad, the owner, deposited $25,000 of personal funds into the business's bank account.
2. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000
was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500.
3. Bought several computer systems on credit for $8,500(30 day open account)
4. Obtained a loan from capital bank in the amount of $10,000.signed a note payable.
5. Paid the $28,250 account payable owed as of December 31.
Instruction:
a. List the December 31 balances of asset, liabilities and owner's equity in tabular from shown
b. Record the effects of each of the each of the five transactions in the format illustrated on page 53.show totals for all columns
after each transaction.
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