Chapter 1, Problem 19EA

Enter each transaction below into the accounting equation. Then, calculate (1) the amount of assets owned by Tommy’s Irish Pub, Inc., at the end of its first month of business, and (2) the amount of net income for the month. All these transactions took place during the first 30 days of business.

1. 1. Tommy started the pub by contributing $ 17,000 in exchange for common stock, and the business borrowed $12,750 from the bank.
2. 2. The pub purchased $4,000 worth of beer and other items (its inventory) with cash.
3. 3. The pub hired a bartender to assist Tommy and help run the new company. For this service, the pub paid $100 each day for 30 days.