Question
Business transactions completed by Hannah Venedict during the month of September are as follows. Using the following transactions, record journal entries, create financial statements, and
Business transactions completed by Hannah Venedict during the month of September are as follows.
Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Sep.1Venedict invested $60,000 cash along with office equipment valued at $25,000 in exchange for common stock of a new company named HV Consulting.Sep.3The company purchased land valued at $40,000 and a building valued at $160,000. The purchase is paid with $30,000 cash and a long-term note payable for $170,000.Sep.5The company purchased $2,000 of office supplies on credit.Sep.7Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of $16,500 and is to be used exclusively in the business.Sep.9The company purchased $5,600 of additional office equipment on credit.Sep.11The company paid $1,800 cash salary to an assistant.Sep.13The company provided services to a client and collected $8,000 cash.Sep.15The company paid $635 cash for this month's utilities.Sep.17The company paid $2,000 cash to settle the account payable created on September 5.Sep.19The company purchased $20,300 of new office equipment by paying $20,300 cash.Sep.21The company completed $6,250 of services for a client, who must pay within 30 days.Sep.23The company paid $1,800 cash salary to an assistant.Sep.25The company received $4,000 cash in partial payment on the receivable created on September 21.Sep.27The company paid $2,800 cash in dividends.
the expanded accounting equation shows the four subsets of equity: Revenues, Expenses, stockholder investments and dividends.Using the dropdown buttons, indicate the impact each transaction has on total equity (if any).Compare the total with the amount of equity reported on the balance sheet.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started