Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year
Fantastic news! We've Found the answer you've been seeking!
Question:
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
- Lita Lopez invested $66,000 cash and equipment valued at $31,000 in the company in exchange for its common stock.
- The company purchased a building for $44,000 cash.
- The company purchased equipment for $5,700 cash.
- The company purchased $3,400 of supplies and $1,800 of equipment on credit.
- The company paid $920 cash for advertising expenses.
- The company completed a financial plan for a client and billed that client $4,600 for the service.
- The company designed a financial plan for another client and immediately collected a $8,100 cash fee.
- The company paid $1,100 cash in dividends to the owner (sole shareholder).
- The company received $3,600 cash as partial payment from the client described in transaction f.
- The company made a partial payment of $900 cash on the equipment purchased in transaction d.
- The company paid $1,900 cash for the secretarys 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.
Related Book For
Posted Date: