Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Enter each transaction into the accounting equation. Begin by entering transaction a. Then, enter each transaction in the order they occurred. (Use parentheses or a

Enter each transaction into the accounting equation. Begin by entering transaction a. Then, enter each transaction in the order they occurred. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.)

image text in transcribed

image text in transcribed

i Transactions Marlene and Pamela opened up MP Public Relations Firm by contributing $22,750 on July 1, 2009, in exchange for common stock. The firm borrowed $15,000 from the bank on July 1 . The note is a 1-year, 10% note, with both principal and interest to be repaid on June 30, 2010. The firm prepaid a year of rent for $1,200 that started August 1, 2009. The firm paid $1,050 cash for operating expenses for the first month. The firm earned $10,500 in revenue the first month. Of that amount, $7,500 was collected in cash. The firm hired an administrative assistant and paid $525 cash in salary expense for the first month. The firm declared and paid distributions to owners in the amount of $2,250 for the first month. At the end of the month, $125 of interest payable is due but not yet paid on the note from item (b). a. b. C. d. e. f. g. h. Print Done The following transactions occurred during MP Public Relations Firm's first year of business Click the icon to view the transactions.) Requirements 1. Show how each transaction affects the accounting equation. 2. Prepare the income statement, statement of changes in shareholders' equity, and statement of cash flows for the month of July. Also, prepare the balance sheet at July 31 Requirement 1. Enter each transaction inlo the accounting equation. Begin by entering transaction a. Then, enter each transaction in the order they occurred. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities + Contributed Capita + Retained Earnings Account Account Account Account a 22,750 Cash 22,750 Common stock 15,000 Notes payable+ b. C. d. e

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

Auditing Cases An Interactive Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

3rd Edition

0131494910, 9780131494916

More Books

Students also viewed these Accounting questions

Question

14. Identify the magic flight in The Blues Brothers.

Answered: 1 week ago