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 $11,200 Accounts Receivable 15,300 Accounts Payable 1,100 Notes Payable 3,000 Common Stock 18,400 Retained Earnings 4,000 The following transactions occurred during the month of January: Jan 1 Paid rent for January, $1,450. 2 Received $9,300 payment on customers' accounts. 3 Paid $1,000 on accounts payable. 4 Received $2,100 for services performed for cash customers. 5 Borrowed $5,500 from a bank and signed a note payable for that amount. 6 Billed the city $6,700 for a feasibility study performed; billed various other credit customers, $2,400. 7 Paid the salary of an assistant, $4,500. 8 Received invoice for January utilities, $910. 9 Paid $6,000 cash for employee salaries. 10 Purchased a van (on January 31) for business use, $10,300. 11 Paid $550 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. (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 + = Accounts Payable + Notes Payable + Van Balance 1 2 3 4 1 5 6 7 8 9 10 11 $ $ $ $ $ $ $ Previous Save Answers Next