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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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.)
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 + ++ + + + + + + + + + + + + + + + +
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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