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Donna Geary started an interior design company called Interiors by Donna, Inc., on April 1, 2018. The following amounts summarize the financial position of
Donna Geary started an interior design company called Interiors by Donna, Inc., on April 1, 2018. The following amounts summarize the financial position of her business on April 14, 2018, after the first two weeks of operations: (Click the icon to view the amounts.) During the remainder of April, the following events occurred: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Enter the remaining transactions for the month of April into the expanded accounting equation, calculating new balances after each transaction. (If a box is not used in the table, leave the box empty; do not enter a zero. Carry down all balances, including zero balance accounts. Enter decreases with a minus sign or parentheses. Abbreviations used: AR - Accounts receivable; Sup Supplies; Equip Equipment; AP = Accounts payable; CS = Common stock; Rev = Revenue; Exp = Expense; Div Dividends.) a. Geary received $5,000 as a gift and used it to buy common stock in the business. Assets = Liabilities + Stockholders' equity Cash + AR + Sup + Equip = AP + CS Retained earnings Rev Exp- Div Bal 1,660 + 4,130 + 0+ 33,000 = 5,400 + 28,140 + 6,900 - 1,650 - 0 a. + + + Bal b. Paid off the beginning balance of Accounts payable. b. Assets Cash AR + Sup + Equip = = Liabilities + Stockholders' equity AP + CS Retained earnings Rev Exp Div + + Bal c. Performed services for a client and received cash of $5,000. C. Bal Assets = Liabilities + AP CS + Cash AR + Sup + Equip = d. Collected cash from a customer on account, $1,000. d. Bal Assets Cash + AR + Sup + Equip = AP + + + e. Purchased supplies on account, $1,200. e. Bal Stockholders' equity Retained earnings Rev Exp - Div Liabilities + CS Stockholders' equity + Retained earnings Rev Exp Div + + Assets = Liabilities + Cash + AR + Sup + Equip = AP + CS + = Stockholders' equity Retained earnings Rev Exp - Div f. Consulted on the interior design of a major office building and billed the client for services performed, $800. f. Assets = Liabilities + Cash + AR + Sup + Equip = AP + Bal g. Sold an additional $2,500 of common stock in the business. Bal + Stockholders' equity CS + Retained earnings Rev Exp - Div + Assets = Liabilities + Stockholders' equity Cash + AR + Sup + Equip = AP + CS + Retained earnings Rev Exp - Div + h. Incurred and paid salaries of $2,300. Assets = Liabilities + Stockholders' equity Cash AR + Sup + Equip = AP + CS + Retained earnings Rev - Exp -Div h. + Bal i. Sold supplies at cost to another interior designer for $135 cash. + + + Assets = Liabilities + Cash + AR + Sup + Equip = AP + CS + i. + + + + + Bal j. Paid dividends of $800 to the stockholders of Interiors by Donna, Inc. Bal Assets = Liabilities + Cash + AR + Sup + Equip = AP + CS + Stockholders' equity Retained earnings Rev Exp - Div Stockholders' equity Retained earnings Rev Exp - Div
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