Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the month of June, Bon Voyage Travel recorded the following transactions; 1) Owners invested $25,000 in cash to start the business. They received common

image text in transcribed

During the month of June, Bon Voyage Travel recorded the following transactions; 1) Owners invested $25,000 in cash to start the business. They received common stock. 2) They paid their first month's rent of $500 in cash. 3) Office equipment costing $8,000 was bought on credit. 4) $500 was paid for office supplies 5) Advertising costing $750 was paid for with cash. 6) Paid $3,000 employee salaries in cash. 7) Earned travel commissions of $10,000 of which $2,000 was received in cash. 8) Paid $5,000 of the $8,000 owed to the equipment supplier. 9) Used $100 of the office supplies. 10) Charged $1,000 of miscellaneous expenses on the corporate credit card. For each of the above transactions, show how they would impact the various balance sheet accounts in the table below. Include a + and - as well as the transaction amount for each entry. Assets Accounts Supplies & Receivable Inventory Liabilities Accounts Payable Owners Equity Retained Paid in Earnings capital Cash Equipment

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

More Books

Students also viewed these Accounting questions