Problem Set A Problem Set A

The Creative Frames Shop was started by Rosa Partridge in a small shopping center. In

the first weeks of operation, she completed the following transactions:

a$.$ Deposited $$21,000$ in an account in the name of the company to start the business.

b$.$ Paid the current month's rent, $$1,500.$

c$.$ Purchased store equipment on credit, $$10,800.$

d$.$ Purchased framing supplies for cash, $$5,100.$

e$.$ Received framing revenues, $$2,400.$

f$.$ Billed customers for services, $$2,100.$

g$.$ Paid utility expense, $$750.$

h$.$ Received payment from customers in transaction $f,$$$600.$

i$.$ Made payment on store equipment purchased in transaction c$,$ $$5,400.$

j$.$ Withdrew cash for personal expenses, $$1,200.$

Arrange the following asset, liability, and owner's equity accounts in an equation

similar to Exhibit $1-1$: Cash, Accounts Receivable, Framing Supplies, Store Equip$-$

ment, Accounts Payable, and Rosa Partridge, Capital.

Show by addition and subtraction, as in Exhibit $1-1,$ the effects of the transactions on

the balance sheet equation. Show new balances after each transaction, and identify

each owner's equity transaction by type.

The Creative Frames Shop was started by Rosa Partridge in a small shopping center. In

the first weeks of operation, she completed the following transactions:

a$.$ Deposited $$21,000$ in an account in the name of the company to start the business.

b$.$ Paid the current month's rent, $$1,500.$

c$.$ Purchased store equipment on credit, $$10,800.$

d$.$ Purchased framing supplies for cash, $$5,100.$

e$.$ Received framing revenues, $$2,400.$

f$.$ Billed customers for services, $$2,100.$

g$.$ Paid utility expense, $$750.$

h$.$ Received payment from customers in transaction $f,$$$600.$

i$.$ Made payment on store equipment purchased in transaction c$,$ $$5,400.$

j$.$ Withdrew cash for personal expenses, $$1,200.$

Arrange the following asset, liability, and owner's equity accounts in an equation

similar to Exhibit $1-1$: Cash, Accounts Receivable, Framing Supplies, Store Equip$-$

ment, Accounts Payable, and Rosa Partridge, Capital.

Show by addition and subtraction, as in Exhibit $1-1,$ the effects of the transactions on

the balance sheet equation. Show new balances after each transaction, and identify

each owner's equity transaction by type.