Beyond Music provides DJ services for events such as high school dances, weddings, and corporate events. Michael

Question:

Beyond Music provides DJ services for events such as high school dances, weddings, and corporate events. Michael Cantu started the business on June 1, 2020. The June activities resulted in totals at June 30, 2020, as follows (illustrated in accounting equation format):

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During July, the following occurred:

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Required

Use additions and subtractions to show the effects of each July transaction on the items in the equation. Do not determine new totals for the items of the equation after each transaction. Next to each change in equity, state whether the change was caused by an investment, a revenue, an expense, or a withdrawal. Determine the final total for each item and verify that the equation is in balance.

Analysis Component: Identify which GAAP guides your treatment of the July 15 transaction. Explain your answer.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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