Fraser Baker opened Baker?s Accounting Service in Winnipeg on September 1, 2021. On September 30, the balance

Question:

Fraser Baker opened Baker?s Accounting Service in Winnipeg on September 1, 2021. On September 30, the balance sheet showed Cash $5,700; Accounts Receivable $2,100; Supplies $350; Equipment $7,600; Accounts Payable $4,300; and F. Baker, Capital $11,450. During October, the following transactions occurred:

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Instructions

a. Beginning with the September 30 balances, prepare a tabular analysis of the effects of the October transactions on the accounting equation.

b. Prepare an income statement and statement of owner?s equity for October, and a balance sheet at October 31.

Taking It Further

Fraser is confused about the accounting treatment of the October 20 transaction. Explain the reason for this treatment.

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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