Transaction: Net Income Total Assets Total Liabilities Total Equity Where can you go to find each of your answers? Balance sheet Income statement Balance sheet Balance sheet April 1 Smith invests $83,000 cash along with office equipment valued at $26,500 in the company. $0 $109,500 $0 $109,500 April 2 The company prepaid $9,600 cash for 12 months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. 0 109,500 0 109,500 April 3 The company made credit purchases for $8,100 in office equipment and $3,700 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $4,300 cash. April 9 The company completed a $6,500 project for a client, who must pay within 30 days. April 13 The company paid $11,800 cash to settle the account payable created on April 3. April 19 The company paid $2,640 cash for the premium on a 12-month insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts. April 22 The company received $3,900 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $4,000 on credit. April 28 Smith withdrew $5,600 cash from the company for personal use. April 29 The company purchased $700 of additional office supplies on credit. April 30 The company paid $500 cash for this month’s utility bill.

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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Transaction:	Net Income	Total Assets	Total Liabilities	Total Equity
Where can you go to find each of your answers?	Balance sheet	Income statement	Balance sheet	Balance sheet
April 1 Smith invests $83,000 cash along with office equipment valued at $26,500 in the company.	$0	$109,500	$0	$109,500
April 2 The company prepaid $9,600 cash for 12 months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.	0	109,500	0	109,500
April 3 The company made credit purchases for $8,100 in office equipment and $3,700 in office supplies. Payment is due within 10 days.
April 6 The company completed services for a client and immediately received $4,300 cash.
April 9 The company completed a $6,500 project for a client, who must pay within 30 days.
April 13 The company paid $11,800 cash to settle the account payable created on April 3.
April 19 The company paid $2,640 cash for the premium on a 12-month insurance policy. The company's policy is to record prepaid expenses in balance sheet accounts.
April 22 The company received $3,900 cash as partial payment for the work completed on April 9.
April 25 The company completed work for another client for $4,000 on credit.
April 28 Smith withdrew $5,600 cash from the company for personal use.
April 29 The company purchased $700 of additional office supplies on credit.
April 30 The company paid $500 cash for this month’s utility bill.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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