Required Information [The following information applies to the questions displayed below.] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. a. Received $94,000 cash when issuing 9,400 new common shares. b. Purchased land by paying $6,500 cash and signing a note payable for $10,500 due in three years. c. Hired a new aesthetician for a salary of $2,400 a month, starting next month. d. NGS purchased a company car for $32,000 cash (list price of $35,000) to assist in running errands for the business. e. Bought and received $850 in supplies for the spa on credit. f. Paid $210 of the amount owed in (e). g. Nicole sold 100 of her own personal shares to Raea Gooding for $900. 3. Prepare a classified balance sheet at April 30 using the information given in the transactions. Include Retained Earnings with a zer balance.

Required Information [The following information applies to the questions displayed below.] Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. a. Received $94,000 cash when issuing 9,400 new common shares. b. Purchased land by paying $6,500 cash and signing a note payable for $10,500 due in three years. c. Hired a new aesthetician for a salary of $2,400 a month, starting next month. d. NGS purchased a company car for $32,000 cash (list price of $35,000) to assist in running errands for the business. e. Bought and received $850 in supplies for the spa on credit. f. Paid $210 of the amount owed in (e). g. Nicole sold 100 of her own personal shares to Raea Gooding for $900. 3. Prepare a classified balance sheet at April 30 using the information given in the transactions. Include Retained Earnings with a zer balance.

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Description: Required Information[The following information applies to the questions displayed below.]Nicole has decided that she is going to start her business, Nicole's Getaway Spa (NGS). A lot has to be done when startinga new business. Here are some transact

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Andi has decided that she is going to start a new business. Here are some transactions that have occurred prior to April 30 Received $96,000 cash when issuing 9,600 new common shares. Purchased land by paying $7,500 cash and signing a note payable for $11,500 due in three years. Hired a new aesthetician for a salary of $2,600 a month, starting next month. NGS purchased a company car (equipment) for $34,000 cash (list price of $37,000) to assist in running errands for the business. Bought and received $950 in supplies for the spa on account. Nicole sold 100 of her own personal shares to Raea Gooding for $300. Assuming that the beginning balances in each of the accounts are zero, complete T-accounts to summarize the transactions in (a)–(f).
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