Q1.

Helen Lau owns and operates an interior design studio called HL Interiors. The following amounts summarize the financial position of her business on August 31, 20X2:

Assets = Liabilities + Owner's Equity

Accounts Account Helen Lau,

Cash + Receivable + Supplies + Land = Payable + Capital

Bal. 2,250 1,500 12,000 8,000 7,750

During September 20X2, the following events occurred.

a. Helen inherited $20,000 and deposited the cash in the business bank account.

b. Performed services for a client and received cash of $700.

c. Paid off the beginning balance of accounts payable.

d. Purchased supplies on account, $1,000.

e. Collected cash from a customer on account, $1,000.

f. Invested personal cash of $1,000 in the business.

g. Consulted on the interior design of a major office building and billed the client for services

rendered, $2,400.

h. Recorded the following business expenses for the month:

(1) Paid office rent, $900.

(2) Paid advertising, $100.

i. Sold supplies to another business for $150 cash, which was the cost of the supplies.

j. Withdrew cash of $1,100 for personal use.

Analyze the effects of the preceding transactions on the accounting equation of HL Interiors. Pls use the attached answer sheet to prepare your answer.

Unit 1 additional question Q1 answer sheet

HL Interiors

Analysis of Transactions

ASSETS =					LIABILITIES +	OWNERS EQUITY
DATE	CASH +	ACCOUNTS RECEIVABLE	+ SUPPLIES +	LAND =	ACCOUNTS PAYABLE +	HELEN LAU, CAPITAL	TYPE OF OWNERS EQUITY TRANSACTION
Bal.	2,250	1,500		12,000	8,000	7,750
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Balance

Total ========== =========