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Ming Chen started a business and had the following transactions in June. Owner invested $66,000 cash in the company along with $15,000 of equipment in
Ming Chen started a business and had the following transactions in June.
- Owner invested $66,000 cash in the company along with $15,000 of equipment in exchange for its common stock.
- The company paid $1,800 cash for rent of office space for the month.
- The company purchased $15,000 of additional equipment on credit (payment due within 30 days).
- The company completed work for a client and immediately collected $2,500 cash.
- The company completed work for a client and sent a bill for $8,700 to be received within 30 days.
- The company purchased additional equipment for $6,400 cash.
- The company paid an assistant $3,900 cash as wages for the month.
- The company collected $4,800 cash as a partial payment for the amount owed by the client in transaction e.
- The company paid $15,000 cash to settle the liability created in transaction c.
- The company paid $1,500 cash in dividends to the owner (sole shareholder).
Assets = Liabilities + Equity Cash + + Accounts Receivable + Equipment = Accounts Payable + Common Stock Dividends + Revenues Expenses a. - + + b. +++ +++ + + Balance after a and b + + C. + + + + Balance after c + + + + + - d. + + + + Balance after d + + + + e. + + + + Balance after e + + + + f. + + = + + + Balance after f + + - + g g. + + + + + Balance after g + + + + h. + + + + Balance after h + + 1. + + + + + + + + + - Balance after i + + + + + + + -- + = + i. Balance after + + +
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