Kawonza Carter is a painting contractor who specializes in painting commercial buildings. At the beginning of June,

Question:

Kawonza Carter is a painting contractor who specializes in painting commercial buildings. At the beginning of June, her firm’s financial records showed the following assets, liabilities, and owner’s equity. Cash Accounts Receivable Office Furniture Auto $288,000 74,000 170,000 110,000 Accounts Payable 61,200

INSTRUCTIONS

Set up an accounting equation using the balances given above. Record the effects of the following transactions in the equation. (Use plus, minus, and equals signs.) Record new balances after each transaction has been entered. Prove the equality of the two sides of the final equation on a separate sheet of paper.

TRANSACTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Performed services for $28,800 on credit. Paid $7,280 in cash for new office