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I am having a lot of trouble trying to figure out what values go where and why. My book does not have similar examples so
I am having a lot of trouble trying to figure out what values go where and why. My book does not have similar examples so I cannot understand this one. The subject is Accounting Basics.
On April 1, Lisa Anderson established Andersons Travel Agency. The following transactions were completed during the month.
1. | Invested $14,000 cash to start the agency. | |
2. | Paid $600 cash for April office rent. | |
3. | Purchased equipment for $4,000 cash. | |
4. | Incurred $900 of advertising costs in the Chicago Tribune, on account. | |
5. | Paid $700 cash for office supplies. | |
6. | Performed services worth $11,000: $3,300 cash is received from customers, and the balance of $7,700 is billed to customers on account. | |
7. | Withdrew $400 cash for personal use. | |
8. | Paid Chicago Tribune $700 of the amount due in transaction (4). | |
9. | Paid employees' salaries $2,200. | |
10. | Received $4,700 in cash from customers who have previously been billed in transaction (6). |
On April 1, Lisa Anderson established Anderson's Travel Agency. The following transactions were completed during the month. 1. 2. 3. 4. 5. Invested $14,000 cash to start the agency. Paid $600 cash for April office rent. Purchased equipment for $4,000 cash. Incurred $900 of advertising costs in the Chicago Tribune, on account. Paid $700 cash for office supplies. Performed services worth $11,000: $3,300 cash is received from customers, and the balance of $7,700 is billed to customers on account. Withdrew $400 cash for personal use. Paid Chicago Tribune $700 of the amount due in transaction (4). Paid employees' salaries $2,200. Received $4,700 in cash from customers who have previously been billed in transaction (6). 6. 7. 8. 9. 10. Complete the tabular analysis of the transactions. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) Owner's Equity Owner's Capital Owner's Drawings + Revenues Expenses 14000 $ $ 14000 $ $
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