Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nancy Tercek started a delivery service, Cullumber Company, on June 1, 2022. The following transactions occurred during the month of June. June 1 Stockholders invested
Nancy Tercek started a delivery service, Cullumber Company, on June 1, 2022. The following transactions occurred during the month of June.
June 1 | Stockholders invested $ 10,000 cash in the business in exchange for common stock. | |
2 | Purchased a used van for deliveries for $ 14,000. Nancy paid $ 3,000 cash and signed a note payable for the remaining balance. | |
3 | Paid $ 300 for office rent for the month. | |
5 | Performed $ 4,400 of services on account. | |
9 | Declared and paid $ 200 in cash dividends. | |
12 | Purchased supplies for $ 100 on account. | |
15 | Received a cash payment of $ 1,000 for services performed on June 5. | |
17 | Purchased gasoline for $ 100 on account. | |
20 | Received $ 1,300 cash for services performed. | |
23 | Made a cash payment of $ 400 on the note payable. | |
26 | Paid $ 100 for utilities. | |
29 | Paid for the gasoline purchased on account on June 17. | |
30 | Paid $ 1,000 for employee salaries. |
Show the effects of the previous transactions on the accounting equation using the following format. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)
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