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PROBLEMS (GROUP A) P1-31A Transaction analysis and the calculation of net income (Learning Objectives 3 & 4 20-25 min. Dan Oliver worked as an accountant

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PROBLEMS (GROUP A) P1-31A Transaction analysis and the calculation of net income (Learning Objectives 3 & 4 20-25 min. Dan Oliver worked as an accountant at a local accounting firm for five years after graduating from college. Recently, he opened his own accounting practice, which he operates as a corporation. The name of the new entity is Oliver and Associates, Inc. Dan experienced the following events during the first month of operations. Some of the events were personal and did not affect the accounting practice. Others were business transactions and should be accounted for by the business Jun 3 Received $30,000 cash proceeds from refinancing his house. 5 $60,000 of stock in the business was sold to Dan Oliver. The cash proceeds were deposited in a new business bank account titled Oliver and Associates, Inc. 7 Paid $450 cash for office supplies for the new accounting practice. 9 Purchased $3,800 of office furniture for the accounting practice and agreed to pay the vendor within three months. 10 Dan sold 500 shares of General Motors stock, which he had owned for several years, receiving $48,000 cash. The cash from the sale of stock was deposited in his personal bank account 14 A representative of a large company telephoned Dan and told him of the company's intention to hire Oliver and Associates, Inc., as its accountants. 20 Finished accounting work for a client and sent the client a bill for $3.800. The client is expected to pay within two weeks 27 Paid office rent. $1.600 30 Paid $1.000 of dividends to Oliver and Associates, Inc., shareholders. Requirements 1. Enter each transaction in the expanded accounting equation of Oliver and Associates, Inc., as needed, calculating new balances after each transaction. 2. Determine the following items: a. Total aseta b. Total liabilities c. Total stockholders' equity d. Net Income or net loss for June

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