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Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
- Owner invested $63,000 cash in the company along with equipment that had a $11,000 market value in exchange for its common stock.
- The company paid $1,200 cash for rent of office space for the month.
- The company purchased $11,000 of additional equipment on credit (payment due within 30 days).
- The company completed work for a client and immediately collected the $2,700 cash earned.
- The company completed work for a client and sent a bill for $7,400 to be received within 30 days.
- The company purchased additional equipment for $5,100 cash.
- The company paid an assistant $3,100 cash as wages for the month.
- The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e.
- The company paid $11,000 cash to settle the liability created in transaction c.
- The company paid $1,300 cash in dividends to the owner (sole shareholder).
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