SamA. started an accounting consulting business in 2023. He will operate the business as a proprietorship. The first month’s transactions for the business are noted below: 1.SamA. invests $5,000 into the business out of his personal savings. 2.SamA. transfers a computer valued at $3,000 into the business. 3.The business purchases computer supplies for $400 cash. 4.The business pays $550 for wages to an assistant. 5.The business completes work for a client, who pays $700 for the service. 6.The business incurs adverting expenses of $600 which are to be paid later. 7.The business provides services totalling $1,200 to be collected later. 8.Business pays the total amount owing from transaction 6. 9.Half of the amount owed from customers in transaction 7 is collected. 10.Business purchases additional computer equipment for $450, cash. 11.SamA. withdraws $300 from the company for personal use. a.Create in excel(or word)a spreadsheet (table) similar to the one below and record each of the above transactions. Follow the “Hunter Environmental Consulting (HEC)” example that was covered in class. Make sure that you calculate the totals for each account. b.Determine the business profit in the first month. c.Calculate owner’s equity (net worth) at the end of the month. d.Show that the accounting equation is in balance.
SamA. started an accounting consulting business in 2023. He will operate the business as a proprietorship. The first month’s transactions for the business are noted below:
1.SamA. invests $5,000 into the business out of his personal savings.
2.SamA. transfers a computer valued at $3,000 into the business.
3.The business purchases computer supplies for $400 cash.
4.The business pays $550 for wages to an assistant.
5.The business completes work for a client, who pays $700 for the service.
6.The business incurs adverting expenses of $600 which are to be paid later.
7.The business provides services totalling $1,200 to be collected later.
8.Business pays the total amount owing from transaction 6.
9.Half of the amount owed from customers in transaction 7 is collected.
10.Business purchases additional computer equipment for $450, cash.
11.SamA. withdraws $300 from the company for personal use.
a.Create in excel(or word)a spreadsheet (table) similar to the one below and record each of the above transactions. Follow the “Hunter Environmental Consulting (HEC)” example that was covered in class. Make sure that you calculate the totals for each account.
b.Determine the business profit in the first month.
c.Calculate owner’s equity (net worth) at the end of the month.
d.Show that the
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