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Ming Chen started a business and had the following transactions in June. a. Owner invested $59,000 cash in the company along with $13,000 of
Ming Chen started a business and had the following transactions in June. a. Owner invested $59,000 cash in the company along with $13,000 of equipment. b. The company paid $2,300 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 $2,700 cash. e. The company completed work for a client and sent a bill for $8,500 to be received within 30 days. f. The company purchased additional equipment for $6,500 cash. g. The company paid an assistant $3,000 cash as wages for the month. h. The company collected $4,700 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 owner withdrew $1,700 cash from the company for personal use. Required: Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. Assets Cash Accounts Receivable Liabilities Equity Equipment Accounts Payable + Ming Chen, Capital Ming Chen, Withdrawals + Revenues Expenses 4 14 + 4 Balance after a and b 0- 0 + OM 0+ 0 0+ . 0 - c + . Balance after c 0+ 0+ 0 M 0 . 0 0 d + . + Balance after di 0 0+ 0 M 0 + 0 + 0
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