Chapter 1, Problem 13E

Exercise 1-13 Identifying effects of transactions using the accounting equation P1

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.

1. Owner invested $60,000 cash in the company along with equipment that has a $15,000 market value in exchange for its common stock.
2. The company paid $1,500 cash for rent of office space for the month.
3. The company purchased $10,000 of additional equipment on credit (payment due within 30days)
4. The company completed work for a client and immediately collected the $2,500 cash earned.
5. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.
6. The company purchased additional equipment for $6,000 cash.
7. The company paid assistant $3,000 cash as wages for the month.
8. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.
9. The company paid $10,000 cash to settle the liability created in transaction c.
10. The company paid $1,000 cash in dividends to the owner (sole shareholder).

Required

Create the following table similar to the one in Exhibit 1.9

Assets					=	Liabilities	+	Equity
Cash	+	Accounts

Receivable+Equipment=Accounts

Payable+Common

Stock-Dividends+Revenues-Expenses