Transaction Analysis

P2-3B. Transaction Analysis Smith Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following: Cash, $8,700; Accounts Receivable, $18,800; Accounts Payable, $4,600; and Notes Payable, $6,500. Assume that Retained Earnings as of January 1, were $1,000. The balance of Common Stock was S15,400. The following transactions occurred during the month of January Paid rent for January, $1,000. 2 Received $9,800 on customers' accounts. 3 Paid $900 on accounts payable. 4 Received $900 for services performed for cash customers. 5 Borrowed $8,000 from a bank and signed a note payable for that amount. 6 Billed the city $7,800 for a feasibility study performed; billed various other credit Jan. 1 ustomers, $4,000. 7 Paid salary of assistant, $4,500. 8 Received invoice for January utilities, $610. 9 Paid $6,000 cash for employees salaries. 2 Purchased a van (on January 31) for business use, $9,800 cash. Paid $375 to the bank as January interest on an outstanding note payable. 10 Il