Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mailin Moon is a freelance writer who submits articles to various magazines and newspapers. She operates out of a small office where she employs one
Mailin Moon is a freelance writer who submits articles to various magazines and newspapers. She operates out of a small office where she employs one administrative assistant. The following activities occurred during March 2017, her first month of business:
- Moon invested $2,500 worth of equipment into her business along with $3,000 cash.
- Submitted a series of articles to The Globe and Mail and received $6,500 cash.
- Purchased supplies on credit; $600.
- Paid the part-time administrative assistant's salary of $1,450.
- Moon ordered $3,000 of office equipment from the IKEA catalogue. It is scheduled to arrive in April or May.
- Paid the rent for the first month; $1,400.
- Submitted an article to Report on Business; will receive $4,500 next month.
Using the format provided below, show the effects of the activities listed in (a) through (g). For each transaction that affects equity, include a brief description beside it (owner investment, owner withdrawal, revenue, expense).
Accounts Assets Cash Receivable + Supplies + Equipment = Liabilities + Equity Accounts Mallin Moon, Explanation of Equity Payable + Capital Transaction
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