Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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. a. Owner invested $64,000 cash in the company along with equipment that had a $20,000 market value in exchange for its common stock b. The company paid $1,200 cash for rent of office space for the month. c. The company purchased $11,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,400 cash earned. e. The company completed work for a client and sent a bill for $7,000 to be received within 30 days. f. The company purchased additional equipment for $5,500 cash. g. The company paid an assistant $3,100 cash as wages for the month. h. The company collected $5,100 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $11,000 cash to settle the liability created in transaction c. The company paid $1,800 cash in dividends to the owner (sole shareholder) Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with a minus sign.) Equity Liabilities Assets Accounts Common Expenses Accounts Cash Equipment Stock Payable Receivable Dividends Revenues + . 9 of 10 e cearch Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities Equity Cash Accounts Receivable + Equipment Accounts Payable Common Stock Dividends Revenues Expenses a + + + b + + + Bal. 0 + 0 + 0 = 0 + 0 + 0 0 0 + + C + + 0 0 0 0 + 0 + 0 0 + 0 Bal d Bal + + + 0 + 0 0 + 0 0 0 0 0 + + + + e + + 0 + 0 0 + 0 0 Bal 0 0 0 + + + + f + + 0 + 0 0 + 0 0 0 + 0 0 Bal + + + + + g Bal 0 01 + 0 + 0 0 01 + 01 + o earch Bal. 0 + 0 + 0 0 + 0 0 + 0 f. + + + + Bal 0 + 0 + 0 0 + 0 + 10 0 0 6 + + + + Bal. 0 + 0 + 0 0 + 0 0 + 0 0 h. + + + + Bal. 0 + 0 + 0 0 + 0 0 + 0 i. + + + + Bal 0 0 + 0 + 10 0 + + 0 0 - 0 + + + + + 10 0 0 0 = 0 + - + $ 0 0 $ $ $ $ 0 Bal $ + $ $ + arch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Essentials

Authors: Frank C Giove

1st Edition

0738671509, 9780738671505

More Books

Students also viewed these Accounting questions