Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Really need help completing this example problem. Thank you for your time! Transaction Analysis Grant Appraisal Service provides commercial and industrial appraisals and feasibility studies.
Really need help completing this example problem. Thank you for your time!
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 $9.700 Accounts Receivable 14.800 Accounts Payable 600 Notes Payable 2.500 Common Stock 18,400 Retained Earnings 3.000 The following transactions occurred during the month of January: Jan 1 Paid rent for January, $950. 2 Received 58,800 payment on customers' accounts. 3 Paid $500 on accounts payable. 4 Received $1,600 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; billed various other credit customers, $1,900. 7 Paid the salary of an assistant, $4,000. 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. $9,800. 11 Paid $50 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: 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. Note: Use a negative sign with your answers, when needed. Cash + Accounts Receivable + Van = Accounts Payable + Notes Payable + Common Stock + Retained Earnings Balance munca BOOOOOOOOOO O o ooo JooooooooooStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started