Accounting Equation:

 ASSETS $=$  LIABILITIES $+$  EQUITY

Transaction# Delivery Accounts Accounts Notes Common $----$Retained Earnings$-----$ 

Cash Van Receivable Supplies Payable Payable Stock Account

$1$ 

$2$ 

$3$ 

$4$ 

$5$ 

$6$ 

$7$ 



 $------------------------------------------------------------------------------------------------$ 

TOTALS $$0$ $$0$ $$0$ $$0$  $$0$ $$0$  $$0$ $$0$ 



Total Assets $=$ $$0$  Total Liabilities $=$  $$0$  Total Equity $=$  $$0$

REQUIRED:

A$)$ account for the following transactions using the Accounting Equation above $($use $1$ row for each transaction$)$  NOTE: you can also use JOURNAL ENTRIES, rather than the Accounting Equation, if you like

B$)$ After completing A above, prepare an Income Statement and a Classified Balance Sheet for the month of September, $2023$ for Strand Corp

Transactions:

$1$ Strand invested $$125,000$ in the business in exchange for common stock

$2$ Strand purchased a delivery van costing $$75,000$ by paying $20\%$ as a downpayment, and borrowing the remainder from the bank

$3$ Strand sold $$260,000$ worth of consulting services, $50\%$ on account, the remainder for cash

$4$ Strand paid Wages of $$120,000$ and Rent of $$50,000$ and Utilities of $$30,000$ 

$5$ Strand purchased $$2,000$ of supplies on account

$6$ Strand collected $$75,000$ from customers sold to on account $($#$3$ above$)$ 

$7$ Strand paid the bank $50\%$ of what they owed them





PART B:

Make your own Journal Entries $($debits & credits$)$ for the following typical type of adjustments to accounts $($use your own numbers$)$:

$1)$ adjust a co's Prepaid Insurance account at year$-$end

$2)$ recognize an Accrued Liability and corresponding Expense at year$-$end

$3)$ recognize Depreciation Exp at year$-$end

$4)$ adjust a co's Unearned Revenue account at year$-$end

Note: include explanations with your adjusting entries.