Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P 1. on the QUIRED answer? ection After receiving his degree in computer science, John Unger started his own business, Regency Business Services Company. The
P 1. on the QUIRED answer? ection After receiving his degree in computer science, John Unger started his own business, Regency Business Services Company. The company completed the following transactions: a. John deposited $18,000 in the bank to start the business and purchased a systems library with an additional investment of $1,840. b. Paid current month's rent on an office, $720. c. Purchased computers and other systems equipment for cash, $10,000. d. Purchased computer supplies on credit, $1,200. e. Received revenue from a client, $1,600. f. Billed a client on completion of a short project, $1,420. g. Paid wages, $800. h. Received a partial payment from the client billed in transaction f, $160. i. Withdrew cash for personal expenses, $500. j. Made a partial payment on the computer supplies purchased in transaction d, $400. 1. Arrange the asset, liability, and owner's equity accounts in an equation similar to that in Exhibit 1, using the following account titles: Cash, Accounts Receivable, Computer Supplies, Equipment, Systems Library, Accounts Payable, and John Unger, Capital. 2. Show by addition and subtraction, as in Exhibit 1, the effects of the transactions on the accounting equation. Show new balances after each transaction, and identify each owner's equity transaction by type. 3. Contrast the effects on cash flows of transactions d and j with transaction c and of transactions f and h with transaction e. P 1. on the QUIRED answer? ection After receiving his degree in computer science, John Unger started his own business, Regency Business Services Company. The company completed the following transactions: a. John deposited $18,000 in the bank to start the business and purchased a systems library with an additional investment of $1,840. b. Paid current month's rent on an office, $720. c. Purchased computers and other systems equipment for cash, $10,000. d. Purchased computer supplies on credit, $1,200. e. Received revenue from a client, $1,600. f. Billed a client on completion of a short project, $1,420. g. Paid wages, $800. h. Received a partial payment from the client billed in transaction f, $160. i. Withdrew cash for personal expenses, $500. j. Made a partial payment on the computer supplies purchased in transaction d, $400. 1. Arrange the asset, liability, and owner's equity accounts in an equation similar to that in Exhibit 1, using the following account titles: Cash, Accounts Receivable, Computer Supplies, Equipment, Systems Library, Accounts Payable, and John Unger, Capital. 2. Show by addition and subtraction, as in Exhibit 1, the effects of the transactions on the accounting equation. Show new balances after each transaction, and identify each owner's equity transaction by type. 3. Contrast the effects on cash flows of transactions d and j with transaction c and of transactions f and h with transaction e
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