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What is the Balance for December 31?

What is the Balance for December 31?

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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What is the Balance for December 31?
v A A = = = v 9 Wrap Text v BIU E E Merge & Center v $ v % 9 S898 Conditional Form Formatting as Tab fx Advertising Expense D F B C H 1. Create an accounting equation and record the effects of each accounting event under the appropriate general ledger account headings. Transactions from July-August have been included on the accounting equation provided. My Assistant, Inc. Accounting Equation for August - December Account titles for Liabilities Stockholders' Equity Accounting Equation Balanced? Assets RE Common Retained Cash n/a Stock Earnings Issue Stock 100 2$ 100 Yes Balance August 1 100| = $ 100 Yes + + $ 900l = 2$ 900 Service Revenue Yes Complete jobs (44) = +$ (44) PayPal Expense Yes Purchase goas (150) = $ (150) Gas Expense Yes + Advertising (120) Expense Pay newspaper | 24 (120) = + I$ Yes + Scheduling (160) Expense Pay soc. media mgr. $ (160) = + I$ Yes + Pay self salary $ (400) = +$ (400) Salaries Expense Yes Balance September 1 126 $ 100 + $ 26 Yes $ 7,500 = 2$ 7,500 Yes 1. Complete jobs + Yes 2. Borrow cash 2$ 500 = 2$ 500l + Salaries Expense No + 3. Purchased gas A Accounting Equation 875 Gas Expense A Balance Sheet (875) = 2$ $ A Income Statement + #REF! A Stmt of Stockholders' Equity A Vertical Balance Sheet MacBook Air 20 DII F1 F2 F3 F4 F5 F6 F7 F8 @ $ % & * 1 4 6 7 8 云 * 00 # M
Transcribed Image Text:v A A = = = v 9 Wrap Text v BIU E E Merge & Center v $ v % 9 S898 Conditional Form Formatting as Tab fx Advertising Expense D F B C H 1. Create an accounting equation and record the effects of each accounting event under the appropriate general ledger account headings. Transactions from July-August have been included on the accounting equation provided. My Assistant, Inc. Accounting Equation for August - December Account titles for Liabilities Stockholders' Equity Accounting Equation Balanced? Assets RE Common Retained Cash n/a Stock Earnings Issue Stock 100 2$ 100 Yes Balance August 1 100| = $ 100 Yes + + $ 900l = 2$ 900 Service Revenue Yes Complete jobs (44) = +$ (44) PayPal Expense Yes Purchase goas (150) = $ (150) Gas Expense Yes + Advertising (120) Expense Pay newspaper | 24 (120) = + I$ Yes + Scheduling (160) Expense Pay soc. media mgr. $ (160) = + I$ Yes + Pay self salary $ (400) = +$ (400) Salaries Expense Yes Balance September 1 126 $ 100 + $ 26 Yes $ 7,500 = 2$ 7,500 Yes 1. Complete jobs + Yes 2. Borrow cash 2$ 500 = 2$ 500l + Salaries Expense No + 3. Purchased gas A Accounting Equation 875 Gas Expense A Balance Sheet (875) = 2$ $ A Income Statement + #REF! A Stmt of Stockholders' Equity A Vertical Balance Sheet MacBook Air 20 DII F1 F2 F3 F4 F5 F6 F7 F8 @ $ % & * 1 4 6 7 8 云 * 00 # M
oSave OFF A日P2 C.. Class 6 Insert Draw Page Layout Formulas Data Review View O Tell me v A A 三三= |1 9 Wrap Text v $ % 9 8 98 Conditional Format BIU - E Merge & Center v Formatting as Table x V fx Advertising Expense A C E G H J K Balance September 1 126 = $ $ 100 26 Yes $ 7,500 | = $ 7,500 Yes + + 1. Complete jobs + + Yes 2. Borrow cash 2$ 500 $ 500 Salaries Expense No %3D + 3. Purchased gas $ (875) 2$ 875 Gas Expense #REF! = + + 4. Paid friends $ (3,500) = $ (3,500) Delivery Expense Yes + 5. Paid newspaper $4 (480) Advertising (480) + $ Yes Expense Scheduling (900) 6. Paid soc. media mgr. $ (900) = $ Yes + IExpense 7. Paid self salary $ (1,000) = $ (1,000) Salaries Expense Yes 8. Paid dividend $ (100) = $ (100) Dividend Yes Balance December 31 500 + $ 645 No %3D + A Accounting Equation A Income Statement A Stmt of Stockholders' Equity A Balance Sheet A Vertical Balance Sheet A Stateme dy MacBook Air 80 000 000 DII F1 F2 F3 F4 F5 F6 F7 F8 ! # $ & *
Transcribed Image Text:oSave OFF A日P2 C.. Class 6 Insert Draw Page Layout Formulas Data Review View O Tell me v A A 三三= |1 9 Wrap Text v $ % 9 8 98 Conditional Format BIU - E Merge & Center v Formatting as Table x V fx Advertising Expense A C E G H J K Balance September 1 126 = $ $ 100 26 Yes $ 7,500 | = $ 7,500 Yes + + 1. Complete jobs + + Yes 2. Borrow cash 2$ 500 $ 500 Salaries Expense No %3D + 3. Purchased gas $ (875) 2$ 875 Gas Expense #REF! = + + 4. Paid friends $ (3,500) = $ (3,500) Delivery Expense Yes + 5. Paid newspaper $4 (480) Advertising (480) + $ Yes Expense Scheduling (900) 6. Paid soc. media mgr. $ (900) = $ Yes + IExpense 7. Paid self salary $ (1,000) = $ (1,000) Salaries Expense Yes 8. Paid dividend $ (100) = $ (100) Dividend Yes Balance December 31 500 + $ 645 No %3D + A Accounting Equation A Income Statement A Stmt of Stockholders' Equity A Balance Sheet A Vertical Balance Sheet A Stateme dy MacBook Air 80 000 000 DII F1 F2 F3 F4 F5 F6 F7 F8 ! # $ & *
Expert Solution
Introduction

Accounting equation shows the effectiveness of double entry books system where each transaction impacts two or more accounts, if the transaction recorded as per double entry system than the accounting equation will be equal or says total assets will equal to total liabilities plus equity.  

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