Lynn Barry started her own consulting firm, Barry Consulting, on June 1, 2021. The following transactions occurred

Question:

Lynn Barry started her own consulting firm, Barry Consulting, on June 1, 2021.

The following transactions occurred during the month of June:

June 1 Sold her shares in Big Country Airlines for $7,000, which she deposited in her personal bank account.

1 Transferred $6,000 from her personal account to a business account in the name of Barry Consulting.

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Instructions

a. Prepare a tabular analysis of the effects of the above transactions on the accounting equation.

b. Calculate profit and owner?s equity for the month ended June 30.

c. Prepare a balance sheet at June 30.

Taking It Further

How should Lynn determine which transactions should be recorded and which ones should not be recorded?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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