Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1-8A Analyzing effects of transactions LO C4, P1, P2, A1 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during

image text in transcribed
image text in transcribed
Problem 1-8A Analyzing effects of transactions LO C4, P1, P2, A1 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations a. Lita Lopez invested $67,000 cash and office equipment valued at $31,000 in the company in exchange for its common stock b. The company purchased an office suite for $42.000 cash C. The company purchased office equipment for $5.600 cash d. The company purchased $3,100 of office supplies and $1.900 of office equipment on credit e. The company paid a local newspaper $930 cash for printing an announcement of the office's opening The company completed a financial plan for a client and billed that client $4100 for the service. 9. The company designed a financial plan for another client and immediately collected a $8,500 cash fee. h. The company paid $1,000 cash in dividends to the owner (sole shareholder) 1. The company received $3.100 cash as partial payment from the client described in transaction The company made a partial payment of $950 cash on the equipment purchased in transaction d. k. The company paid $2.400 cash for the office secretary's wages for this period. Required: 2. Enter the amount of each transaction on individual items of the accounting equation (Reductions in account balances should be indicated with a minus sign.) Liabilities Equity Accounts Receivable Assets Orice Supplies Accounts Common Stock Cash - Equipment - OmiceSuite - Payable - - Dividends + Revenues - Expenses 0 0 + 0 - 0 + 0 - Required: 2. Enter the amount of each transaction on individual items of the accounting equation (Reductions in account balances should be Indicated with a minus sign.) Assets Office Supplies Accounts Common Office Equipment + Receivable - Office Suite = Dividends - Revenues - 0 0 0 0 - 0-00

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

Algorithm Audit Why What And How

Authors: Biagio Aragona

1st Edition

0367530929, 978-0367530921

More Books

Students also viewed these Accounting questions