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. Jasmine started a haircutting business called Expressions. The following events occurred during its first month: a. On August 1, Worthy invested $3,000 cash and
. Jasmine started a haircutting business called Expressions. The following events occurred during its first month: a. On August 1, Worthy invested $3,000 cash and $15,000 of equipment in Expressions in exchange for common stock. b. On August 2, Expressions paid $600 cash for furniture for the shop. c. On August 3, Expressions paid $500 cash to rent space in a mall for August d. On August 4, it purchased $1,200 of equipment on credit for the shop (using a long term note payable) e. On August 5, Expressions opened for business. Cash received from haircutting services in the first week of business was $825 f. On August 15, it provided $100 of haircutting services on account g. On August 17, it received a $100 check for service previously rendered on account. h. On august 17, it paid $125 to an assistant i. Cash received from services provided during second half of August was $930 j. On August 31, it paid a $400 instalment toward principal on the note payable entered into on August 4 k. On August 31, it paid $900 cash in dividends to Worthy (sole shareholder) Required: 1. Open necessary T accounts 2. Prepare a Trial balance as of August 31 3. Prepare an income statement for August 4. Prepare a balance sheet as of August 31
. Jasmine started a haircutting business called Expressions. The following events occurred during its first month:
a. On August 1, Worthy invested $3,000 cash and $15,000 of equipment in Expressions in exchange for common stock.
b. On August 2, Expressions paid $600 cash for furniture for the shop.
c. On August 3, Expressions paid $500 cash to rent space in a mall for August
d. On August 4, it purchased $1,200 of equipment on credit for the shop (using a long term note payable)
e. On August 5, Expressions opened for business. Cash received from haircutting services in the first week of business was $825
f. On August 15, it provided $100 of haircutting services on account
g. On August 17, it received a $100 check for service previously rendered on account.
h. On august 17, it paid $125 to an assistant
i. Cash received from services provided during second half of August was $930
j. On August 31, it paid a $400 instalment toward principal on the note payable entered into on August 4
k. On August 31, it paid $900 cash in dividends to Worthy (sole shareholder)
Required:
1. Open necessary T accounts
2. Prepare a Trial balance as of August 31
3. Prepare an income statement for August
4. Prepare a balance sheet as of August 31
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