Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

  1. A shareholder paid Northstar Corp. $60,000 cash for share capital in the business.
  2. Northstar Corp. collected $800 for commissions earned today.
  3. A client rented equipment for $1,600 cash.
  4. Northstar Corp. bought $800 of supplies paying $200 cash and $600 on account.
  5. Northstar Corp. collected $6,500 for commissions earned today.
  6. Northstar Corp. returned $100 of defective supplies today that were originally purchased for cash.
  7. $1,100 of commissions were earned and collected today by Northstar Corp..
  8. Northstar Corp. bought $3,000 of equipment, using $750 cash and $2,250 on account.
  9. Northstar Corp. used credit to purchase $600 of supplies.
  10. 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Educational Foundations

Authors: Leslie Kaplan, James D Stice, William Owings

2nd Edition

1285968298, 9781285968292

More Books

Students also viewed these Accounting questions

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago

Question

3. An initial value (anchoring).

Answered: 1 week ago