Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Goal Systems, a business consulting firm, engaged in the following transactions: Issued common stock for $75,000 cash. Borrowed $35,000 from a bank. Purchased equipment for

Goal Systems, a business consulting firm, engaged in the following transactions:

  1. Issued common stock for $75,000 cash.
  2. Borrowed $35,000 from a bank.
  3. Purchased equipment for $12,000 cash.
  4. Prepaid rent on office space for 6 months in the amount of $7,800.
  5. Performed consulting services in exchange for $6,300 cash.
  6. Performed consulting services on credit in the amount of $18,750.
  7. Incurred and paid wage expense of $9,500.
  8. Collected $10,200 of the receivable arising from Transaction f.
  9. Purchased supplies for $1,800 on credit.
  10. Used $1,200 of the supplies purchased in Transaction i.
  11. Paid for all of the supplies purchased in Transaction i.

image text in transcribed

Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave the cells blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (i.e. Asset, Liability), enter "0" since the net effect on the item is zero. Assets Liabilities Stockholders' Equity Contributed Capital Retained Earnings + a. 75,000 o 75,000 o b. 35,000 35,000 o 0 C. -12,000 X 12,000 X 0 0 d. -7,800 X 0 0 -7,800 X e. 6,300 o o 6,300 f. 18,750 0 0 18,750 g. -9,500 o o -9,500 h. -10,200 x o 10,200 x 0 i. -1,800 X -1,800 X 0 0 j. -1,200 0 0 -1,200 k. -1,800 -1,800 0 o

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

Trap Doors And Trojan Horses An Auditing Action Adventure

Authors: D. Larry Crumbley, David Kerr, Veronica Paz, Lawrence Smith

1st Edition

1531021573, 978-1531021573

More Books

Students also viewed these Accounting questions