Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i have completed the chart but can not figure out the net income. please help. thank you! Lita Lopez started Biz Consulting, a new business,

i have completed the chart but can not figure out the net income. please help. thank you! image text in transcribed
image text in transcribed
image text in transcribed
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $69,000 cash and equipment valued at $37,000 in the company. b. The company purchased a building for $42,000 cash. c. The company purchased equipment for $5,200 cash. d. The company purchased $3,700 of supplies and $1,100 of equipment on credit. e. The company paid $1,000 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,600 for the service. g. The company designed a financial plan for another client and immediately collected a $8,700 cash fee. h. L. Lopez withdrew $1,400 cash from the company for personal use. i. The company received $3,600 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $550 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Determine the company's net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions