Question
At the beginning of March, Sheridan Software Company had Cash of $11,787, Accounts Receivable of $17,537, Accounts Payable of $4,193, and G. Sheridan, Capital of
At the beginning of March, Sheridan Software Company had Cash of $11,787, Accounts Receivable of $17,537, Accounts Payable of $4,193, and G. Sheridan, Capital of $25,131. During the month of March, the following transactions occurred.
1. | Purchased equipment for $24,184 from Digital Equipment. Paid $4,384 cash and signed a note payable for the balance. | |
2. | Received $12,441 from customers for contracts billed in February. | |
3. | Paid $2,885 for March rent of office space. | |
4. | Paid $2,538 of the amounts owing to suppliers at the beginning of March. | |
5. | Provided software services to Kwon Construction Company for $7,446 cash. | |
6. | Paid BC Hydro $996 for energy used in March. | |
7. | G. Sheridan withdrew $4,597 cash from the business. | |
8. | Paid Digital Equipment $2,079 on account of the note payable issued for the equipment purchased in transaction 1. Of this, $99 was for interest expense. | |
9. | Hired an employee to start working in April. | |
10. | Incurred advertising expense on account for March, $1,733. |
Prepare a tabular analysis of the above transactions. The first row contains the amounts the company had at the beginning of March. (If a transaction causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parenthesis) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-24 for example.)
Assets | = | Liabilities | + | Owner's Equity | |||||||||||||
Trans. | Cash | + Accounts Rec. | + Equipment | + Accounts Payable | + Note Payable | + G. Sheridan Capital | - G. Sheridan Drawings | + Revenues | - Expenses | ||||||||
Bal. | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||
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Total | $ | $ | $ | $ |
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