Smart Design Corporation creates radio and television advertising for local businesses in the twin cities. The following
Question:
Smart Design Corporation creates radio and television advertising for local businesses in the twin cities. The following alphabetical list shows Smart Design’s account balances as of January 31, 2011:
Accounts Payable …………………….. $ 2,710
Accounts Receivable …………………. 35,000
Cash ………………………………….. 6,200
Common Stock ………………………. 15,000
Design Revenue ……………………… 103,000
Dividends ……………………………. 18,000
Equipment …………………………… ?
Loans Payable ……………………….. $ 5,000
Rent Expense ………………………… 6,440
Retained Earnings …………………… 22,000
Telephone Expense ………………….. 480
Unearned Revenue ………………….. 9,000
Wages Expense ……………………… 59,000
REQUIRED
Insert the account at the top of its corresponding T account and enter the dollar amount as a normal balance in the account. Determine the balance of equipment and then show that the accounting equation is in balance.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Assets Cash 6200 Accounts Receivable 35000 Equipment Liabilities Accounts Payable 2710 Loans Payabl...View the full answer
