Required: Enter the impact of each transaction on individual items of the accounting equation. minus sign.)
Required: Enter the impact of each transaction on individual items of the accounting equation. minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common
stock.
b. The company paid $2,500 cash for rent of office space for the month.
c. The company purchased $17,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected the $2,500 cash earned.
e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days.
f. The company purchased additional equipment for $5,900 cash.
g. The company paid an assistant $3,500 cash as wages for the month.
h. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $17,000 cash to settle the liability created in transaction c.
j. The company paid $1,100 cash in dividends to the owner (sole shareholder).
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a
minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F646a794d-e587-473e-a1b8-2a8879d17700%2Fc7b76fa5-3a23-4de5-9b4e-4e5c17140d3b%2Fap9qdxj_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common
stock.
b. The company paid $2,500 cash for rent of office space for the month.
c. The company purchased $17,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected the $2,500 cash earned.
e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days.
f. The company purchased additional equipment for $5,900 cash.
g. The company paid an assistant $3,500 cash as wages for the month.
h. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $17,000 cash to settle the liability created in transaction c.
j. The company paid $1,100 cash in dividends to the owner (sole shareholder).
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a
minus sign.)
![Assets
Liabilities
Equity
Accounts
Accounts
Common
Cash
+ Equipment
Dividends
Revenues
Expenses
%3D
Receivable
Payable
Stock
a.
+
%3D
b.
%3D
Bal.
C.
Bal.
+
%3D
d.
+
Bal.
+
%3D
e.
+
+
+
Bal.
+
+
+
f.
+
%3D
+
Bal.
+
+
g.
+
Bal.
+
+
h.
+
Bal.
+
+
+
i.
+
Bal.
+
+
%3D
j.
+
+
Bal.
$
2$
$
$
$
$
+
%3D
+ ++ +
+ + +
+ + +
+ + +
+ + + +
+ +](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F646a794d-e587-473e-a1b8-2a8879d17700%2Fc7b76fa5-3a23-4de5-9b4e-4e5c17140d3b%2Fvgkxkg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assets
Liabilities
Equity
Accounts
Accounts
Common
Cash
+ Equipment
Dividends
Revenues
Expenses
%3D
Receivable
Payable
Stock
a.
+
%3D
b.
%3D
Bal.
C.
Bal.
+
%3D
d.
+
Bal.
+
%3D
e.
+
+
+
Bal.
+
+
+
f.
+
%3D
+
Bal.
+
+
g.
+
Bal.
+
+
h.
+
Bal.
+
+
+
i.
+
Bal.
+
+
%3D
j.
+
+
Bal.
$
2$
$
$
$
$
+
%3D
+ ++ +
+ + +
+ + +
+ + +
+ + + +
+ +
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