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Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare
Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions: |
a. | Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. |
b. | The company paid $1,500 cash for rent of office space for the month. |
c. | The company purchased $10,000 of additional equipment on credit (payment due within 30 days). |
d. | The company completed work for a client and immediately collected the $2,500 cash earned. |
e. | The company completed work for a client and sent a bill for $8,000 to be received within 30 days. |
f. | The company purchased additional equipment for $6,000 cash. |
g. | The company paid an assistant $3,000 cash as wages for the month. |
h. | The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e. |
i. | The company paid $10,000 cash to settle the liability created in transaction c. |
j. | The company paid $1,000 cash in dividends to the owner (sole shareholder). |
Required: |
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) |
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