Question
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. Lita Lopez invested $69,000 cash and
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
- Lita Lopez invested $69,000 cash and office equipment valued at $33,000 in the company in exchange for its common stock.
- The company purchased an office suite for $41,000 cash.
- The company purchased office equipment for $5,400 cash.
- The company purchased $3,600 of office supplies and $1,900 of office equipment on credit.
- The company paid a local newspaper $840 cash for printing an announcement of the offices opening.
| Assets | Liabilities | Equity | ||||||||||||||||||
| Cash | + | Accounts Receivable | + | Office Supplies | + | Office Equipment | + | Office Suite | = | Accounts Payable | + | Common Stock |
| Dividends | + | Revenues |
| Expenses | ||
| a. | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted |
| not attempted | + | not attempted |
| not attempted | |
| b. | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted |
| not attempted | + | not attempted |
| not attempted | |
| Bal. | 0 | + | 0 | + | 0 | + | 0 | + | 0 | = | 0 | + | 0 |
| 0 | + | 0 |
| 0 | |
| c. | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted |
| not attempted | + | not attempted |
| not attempted | |
| Bal. | 0 | + | 0 | + | 0 | + | 0 | + | 0 | = | 0 | + | 0 |
| 0 | + | 0 |
| 0 | |
| d. | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted |
| not attempted | + | not attempted |
| not attempted | |
| Bal. | 0 | + | 0 | + | 0 | + | 0 | + | 0 | = | 0 | + | 0 |
| 0 | + | 0 |
| 0 | |
| e. | not attempted | + | not attempted | + | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted |
| not attempted | + | not attempted |
| not attempted | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Chapters 14-23
Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver
8th Edition
0136073018, 978-0136073017
