Question
Selected transactions for BM Corporation, an interior decorating corporation (i.e., service business), in its first month of business, are shown below. Jan. 2: Invested $15,000
Selected transactions for BM Corporation, an interior decorating corporation (i.e., service business),
in its first month of business, are shown below.
Jan. 2: Invested $15,000 cash in the business in exchange for common shares.
Jan 3: Purchased used car for $2,000 cash for use in the business.
Jan 15: Billed customers $1,800 for services performed.
Jan 16: Paid $200 cash for advertising.
Jan 20: Received $700 cash from customers billed on January 15.
Jan 30: Paid salaries of $1,000 to staff.
Required: For each transaction indicate the following.
(a) Analyze business transactions by applying accounting equation
(b) Journalize business transactions.
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