Sarah decides to open a cleaning and laundry service near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in equity. Transactions (1) Issued ordinary shares in exchange for $50,000 cash on June 1. (2) Purchased laundry equipment for $10,000 paying $4,000 in cash and the remainder due in 30 days. (3) Purchased laundry supplies for $2,200 cash. (4) Cash receipts from customers for cleaning and laundry amounted to $1,500. (5) Paid salaries of $1200 to student workers. (6) Billed the Lion Soccer Team $200 for cleaning and laundry services. (7) Paid dividends of $900. Notes: Solve on a seperate sheet and upload used the below suggested format Trans- Accounts Share action + Retained Cash + Receivable + Supplies + Equipment Capital + Earnings = Accounts Payable

Sarah decides to open a cleaning and laundry service near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in equity. Transactions (1) Issued ordinary shares in exchange for $50,000 cash on June 1. (2) Purchased laundry equipment for $10,000 paying $4,000 in cash and the remainder due in 30 days. (3) Purchased laundry supplies for $2,200 cash. (4) Cash receipts from customers for cleaning and laundry amounted to $1,500. (5) Paid salaries of $1200 to student workers. (6) Billed the Lion Soccer Team $200 for cleaning and laundry services. (7) Paid dividends of $900. Notes: Solve on a seperate sheet and upload used the below suggested format Trans- Accounts Share action + Retained Cash + Receivable + Supplies + Equipment Capital + Earnings = Accounts Payable

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Description: Sarah decides to open a cleaning and laundry service near the local college campus thatwill operate as a corporation. Analyze the following transactions for the month of Junein terms of their effect on the basic accounting equation. Record each tran

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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Transactions for Concord SE for the month of May are presented below. Prepare journal entries for each of these transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) May 1 B.D. Concord invests €3,890 cash in exchange for ordinary shares to start his welding business. 3 Buys equipment on account for €1,121. 13 Pays €413 to landlord for May rent. 21 Bills Noble Corp. €550 for welding work done. (Use Service Revenue account.) Date Account Titles and Explanation Debit Credit
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Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts. Cash $ 10,200 Cash dividends $ 2,340 Accounts receivable 15,200 Consulting revenue 15,200 Office supplies 3,550 Rent expense 3,910 Office equipment 18,310 Salaries expense 7,350 Land 45,990 Telephone expense 790 Accounts payable 8,740 Miscellaneous expenses 610 Common stock 84,310 Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0.
Provide a ledger account instead!
Select whether each of the following would appear on the income statement, statement of owner's equity, or balance sheet. If an item may appear on more than one statement, choose the option that indicates all possible statements. The first item is provided as an example. Item Classification 0. Example: The total liabilities of the business at the end of the year. Balance Sheet a. The amount of the owner's Capital balance at the end of the year. b. The amount of depreciation expense on equipment during the year. c. The amount of the company's net income for the year. d. The book value of the equipment. e. Total insurance expired during the year. f. Total accounts receivable at the end of the year. g. Total withdrawals by the owner. h. The cost of utilities used during the year. i. The amount of the owner's Capital balance at the beginning of the year.
Record the following selected transactions for April.
You are the bookkeeper for Harley Inc., a newly formed corporation. Harley had the following transactions for their business: * Four shareholders contributed $40,000 ($10,000 each) in exchange for Harley common stock. * Harley purchased inventory for $5,000. Harley received an invoice for the inventory that is due in 30 days. What are the effects on Harley's accounting equation? A B D Based on the two transactions, Assets increased by $40,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $45,000. Based on the two transactions, Assets increased by $45,000, Liabilities increased by $5,000 and Shareholder Equity increased by $40,000. C Based on the two transactions, Assets increased by $15,000, Liabilities increased by $5,000 and Shareholder Equity increased by $10,000. Based on the two transactions, Assets increased by $35,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $40,000.
During the year, the Flight Company experienced the following accounting transactions: 1. Issued common stock in the amount of $150,0002. Paid a $30,000 cash dividend3. Borrowed $25,000 from a bank4. Made a principal payment of $3,500 on an outstanding bank loan5. Made an interest payment of $1,200 on an outstanding bank loan Using the accounting equation, record each of the transactions in columnar format using the following template:Use negative signs with answers, when appropriate.
For each of the following independent transactions, indicate whether there was an Increase, a Decrease, or No Impact for each financial statement element. Transaction Assets Liabilities Owners' Equity Issued shares to stockholders Owe salaries to employees Received telephone bill to be paid next month Purchased 6-month fire insurance policy Performed services and billed customer PLEASE NOTE: You are to use the following words - "Increase", "Decrease", or "No Impact" - when you fill in the blanks (Capitalize and omit the quotation marks).
Transactions for Splish Company for the month of May are presented below. Prepare journal entries for each of these transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount Is entered. Do not indent manually. Record journal entries in the order presented In the problem.) May 1 B.D. invests $3,970 cash in exchange for common stock to start his welding business, Splish Company. 3 Buys equipment on account for $1,099. 13 Pays $388 to landlord for May rent. 21 Bills Noble Corp. $450 for welding work done. (Use Service Revenue account.) Date Account Titles and Explanation Debit Credit