Homework Help is Here – Start Your Trial Now!
Business
Accounting
What’s the company’s net income?

What’s the company’s net income?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
What’s the company’s net income?
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operatio a. Lita Lopez invested $60,000 cash and equipment valued at $33,000 in the company. b. The company purchased a building for $42,000 cash. c. The company purchased equipment for $5,300 cash. d. The company purchased $3,100 of supplies and $1,400 of equipment on credit. e. The company paid $890 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,600 for the service. g. The company designed a financial plan for another client and immediately collected a $8,800 cash fee. h. L. Lopez withdrew $1,200 cash from the company for personal use. i. The company received $3,600 cash as partial payment from the client described in transaction f. J. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income.
Transcribed Image Text:Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operatio a. Lita Lopez invested $60,000 cash and equipment valued at $33,000 in the company. b. The company purchased a building for $42,000 cash. c. The company purchased equipment for $5,300 cash. d. The company purchased $3,100 of supplies and $1,400 of equipment on credit. e. The company paid $890 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,600 for the service. g. The company designed a financial plan for another client and immediately collected a $8,800 cash fee. h. L. Lopez withdrew $1,200 cash from the company for personal use. i. The company received $3,600 cash as partial payment from the client described in transaction f. J. The company made a partial payment of $700 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income.
f. a. h. b. e. g. Balance after a and b C. Balance after c Balance after d d. Balance after e Balance after f Balance after g Balance after h i. Balance after i j. Balance after j k. Balance after k $ Cash 0 +0 0 0 +0 0 + 0+ 0 + + + 0 + + + 0 + + + + + + + + + + + $ Recolvable 0 0 0 + + + + + + + + 0 + + +0 + +0 + +0 +0 + +0 + + 0 + $ Supplies 0 4 Equipment +0 0 + 0 + 0 + + + + + + + + + 0 + + +0 + +0 + +0 + 0 + + ➜ Building - 0 + + 0 + + + + +0 + +0 + +0 + 0 + + +0 + +0 + +0 + $ 0+ $ 0 = 10 = 0 = 0 = = 0 = = = = = = 0 = = = 0 = 0 = Accounts Payable = 0 = = 0 = $ + + + 0 + + +0 + 0 + + +0 + +0 T 0 + L. Lopez, Capital + 0 + + 0 + 0 + 0 + + + $ 0 Your disk is almost full Save space by optimizing storage. - -0 0 0 - - 0 L. Lopez, Withdrawals - 0 - 0 - 0- 0 - 0 - $ + + 0 + + 0 + + 0 + Revenu + 0 + + + 0 + 0+ + 0 + + 0 + + 0 + + 0 + $
Transcribed Image Text:f. a. h. b. e. g. Balance after a and b C. Balance after c Balance after d d. Balance after e Balance after f Balance after g Balance after h i. Balance after i j. Balance after j k. Balance after k $ Cash 0 +0 0 0 +0 0 + 0+ 0 + + + 0 + + + 0 + + + + + + + + + + + $ Recolvable 0 0 0 + + + + + + + + 0 + + +0 + +0 + +0 +0 + +0 + + 0 + $ Supplies 0 4 Equipment +0 0 + 0 + 0 + + + + + + + + + 0 + + +0 + +0 + +0 + 0 + + ➜ Building - 0 + + 0 + + + + +0 + +0 + +0 + 0 + + +0 + +0 + +0 + $ 0+ $ 0 = 10 = 0 = 0 = = 0 = = = = = = 0 = = = 0 = 0 = Accounts Payable = 0 = = 0 = $ + + + 0 + + +0 + 0 + + +0 + +0 T 0 + L. Lopez, Capital + 0 + + 0 + 0 + 0 + + + $ 0 Your disk is almost full Save space by optimizing storage. - -0 0 0 - - 0 L. Lopez, Withdrawals - 0 - 0 - 0- 0 - 0 - $ + + 0 + + 0 + + 0 + Revenu + 0 + + + 0 + 0+ + 0 + + 0 + + 0 + + 0 + $
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS