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Accounting Equation has assets of $5,250,000 and liabilities of Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31,

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Accounting Equation has assets of $5,250,000 and liabilities of Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017 b. Stockholders equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilsties increased b c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018 d. Stockholders equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,00o during 2018. e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income v Transactions Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March: a. Opened a business bank account with a deposit of $50,000 in exchange for common stock b. Purchased supplies on account, $4,000. c. Paid creditors on account, $2,300. d. Received cash from fees earned on insurance commissions, $13,80o. e. Paid rent on office and equipment for the month, $5,000. f. Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300 g. Paid office salaries, $2,500 h. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300 . Billed insurance companies for sales commissions earned, $12,500. j. Paid dividends, $3,900. Required: 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets Accounts Receivable Liabilaties+ Stockholders' Equity Accounts Rent Sal. Expense Item Cash Su Dividends + Payable Common Stock Dees Earned Expense Exp b. Bal. Stockholders' Equity Sal. Auto Supp Expense Common Fees Rent - Dividends + It Stock Earned Expense Expense Expense Expense b. Bal. C. Bal. Bal. Bal. Bal. Bal. h. Bal. Bal. Bal. h. Bal. Bal. Bal. 2. Stockholders' equity is the right of stockholders' to the assets of the business. These rights are V by issuing common stock and revenues and by dividends and expenses 3. Determine the net income for March. 4. How much did March's transactions increase or decrease retained earnings? e by

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