Question
Based on the following transactions, complete the table shown below. A shareholder paid Northstar Corp. $60,000 cash for share capital in the business. Northstar Corp.
Based on the following transactions, complete the table shown below.
- A shareholder paid Northstar Corp. $60,000 cash for share capital in the business.
- Northstar Corp. collected $800 for commissions earned today.
- A client rented equipment for $1,600 cash.
- Northstar Corp. bought $800 of supplies paying $200 cash and $600 on account.
- Northstar Corp. collected $6,500 for commissions earned today.
- Northstar Corp. returned $100 of defective supplies today that were originally purchased for cash.
- $1,100 of commissions were earned and collected today by Northstar Corp..
- Northstar Corp. bought $3,000 of equipment, using $750 cash and $2,250 on account.
- Northstar Corp. used credit to purchase $600 of supplies.
- Northstar Corp. paid dividends of $1,400 to the shareholders.
a) To complete the table shown below, identify the headings (account names) for each column by clicking on the appropriate cell and making a selection. Use additions (+ sign) and subtractions (- sign) to show the transactions' effects on the elements of the equation. Indicate next to each change in equity (in the explanation column) whether it was caused by the issuance of share capital (investment), a revenue, an expense or payment of dividends. Identify revenues and expenses by name. If a transaction does not affect equity, no explanation is required. Calculate the total balance for each column (no + or - sign is required for totals)
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