E3-21 (Static) Determining the Effects of Various Transactions [LO 3-3, LO 3-5] EZ Reader was founded in January to provide text reading and reconding services, Selected transactions for EZ Reader's first month of twusiness are as follows: a. Issued common stock to investors for $50,000 cash. b. Billed customers $10,500 for services performed in January c. Purchased equipment for $24,500 for use in the business. Paid in cash d. Purchased and recelved $2,400 of supplies on account e. Received $7.500 cash from customers billed in transaction . Used $1,500 in unilitios, which will be poid in february g. Paid employees $3,500 cash for work done in January h Paid $1.200 cash toward supplies purchased in transaction () Pequired: 1. For each transaction, give (7) the name of the account behg debited or crediqed, (2) the basic account type (Asset, Hability. Stockholders Equaly, Retained Earnings, Expense). (3) whether the account is increased ( + ) or decreased ( ) d due to the transaction, and ( 4 ) whether the account normally holds a debit or cresin balance. Fransaction faf has been given as an example. 2-b. Calculate the compariy's preliminary net inconse. 2b. Calculate the company's net profit margin CUsed $1,500 in ut attes, which will be pald in Febuary g. Paid employees $3.500 cash for work done in January. h Paid $1,200 cash toward supplies purchased in transaction (a) Required: 1. For each transaction, give (1) the name of the account being debited or ciedited, (2) the basic account tyre (Asset Lability. Stockholders' Equity. Aectained Farnings. Expense). (5) whether the account is increased ( ) ) or decreased ( ) due to the transaction, and (4) whether the account normally holds a debit or cred: balance. Transaction fas has been given as an example 2-a. Calculate the company's preliminary net incame. 2-b. Calculate the compony's net profit margin. Complete this question by entering your answers in the tabs below. Calculate the comsany's preliminary net income. CUsed $1,500 in utilities, which will be paid in Fetruary 9. Paid employees $3,500 cash for work done in January h Paid $1200 cast towid supplies parchased in transaction (d) Required: 1. For each transaction, give (1) the name of the account being debaled or credited, (2) the basic account type (Asset. Lability. Stocktiolders' Equity, Retained Earnings, Expense), (3) whether the account is increased () or decreased () due to the transaction, and (4) whether the account nomaly holds a debit or ciedit balance. Iransaction (a) has been given as an examplon. 2-a. Calculate the company's preliminary net income. 2.b. Colculate the company's net profit matgin. Complete this question by entering your answers in the tabs below. Calculate the companyss net protit margin. (Round your answer to 1 decimal plate)
