Question 2 Not complere Markrd out of 20.00 F Rlag question Transaction Analysis Grant Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following Cash $10.700 Accounts Receivable 15,300 Accounts Payable 600 Notes Payable 3,500 Common Stock 18.400 Retained Earnings 4,000 The following transactions occurred during the month of January 1 Pald rent for january. $950. 2 Recelved $8.a00 payment on customers' accounts jan 3 Paid $750 on accounts payable 4 Received $1.700 for services performed for cash customers 5 Borrowed $5,000 from a bank and signed a note payable for that amount 6 Billed the city $6.200 for a feasibility study performed: biled various other credit customers, $1.900 7 Paid the salary of an assistant. $3.500 8 Recerved irvoice for january utilities. $410 9 Paid $6.000 cash for employee salaries. 10 Purchased a van (on lanuary 31) for business use. $8.800 11 Paid $150 to bank as lanuary interest on the outstanding note payable (a) Set up an eccounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Pay (Note: The beginning Van account balance is $0.) Required (b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balnces, and total the columns to show that assets equal liabilities plus stockholders' equity as o Retained Earnings Notes Payable+ Common Stock Accounts Payable Van Accounts Receivable Cash 0 C dance C Required X (a) Set up an accounting equation in columnar form with the following individual assets, liabilities and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item. (Note: The beginning Van account balance is $0.) (b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets equal liabilities plus stockholders' equity as of January 31 2 Received $8,800 payment on customers' accounts. 3 Paid $750 on accounts payable. 4 Received $1,700 for services performed for cash customers 5 Borrowed $5,000 from a bank and signed a note payable for that amount. Billed the city $6,200 for a feasibility study performed: billed various other credit customers. $1,900. 6 7 Paid the salary of an assistant, $3,500. 8 Received invoice for January utilities, $410 9 Paid $6,000 cash for employee salaries 10 Purchased a van (on January 31) for business use. $8.800. 11 Paid $150 to bank as January interest on the outstanding note payable. Required (a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: (Note: The beginning Van account balance is $0.) (b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets + Retained Earnings Accounts Payable+ Notes Payable + Common Stock Cash +Accounts Receivable+ Van C C 0 0 Balance C C 0 0 0 0 1 C 0 0 2 0 0 0 3 C C C C 0 0 0 6 0 0 C 0 8 C 0 C C 0 10 0 0 C 11 S C 0 0 Check 7Save Answers O Previous oololo ooooooolo lolo ooOo alo in on
