Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $60,000 cash

image text in transcribed
image text in transcribed
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $60,000 cash and office equipment valued at $36,000 in the company in exchange for its common stock. b. The company purchased an office suite for $47,000 cash. c. The company purchased office equipment for $6,000 cash. d. The company purchased $3.500 of office supplies and $1,300 of office equipment on credit. e. The company paid a local newspaper $980 cash for printing an announcement of the office's opening, f. The company completed a financial plan for a client and billed that client $4,200 for the service. Q. The company designed a financial plan for another client and immediately collected a $8,000 cash fee. h. The company paid $1,400 cash in dividends to the owner (sole shareholder). i. The company received $3,200 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $650 cash on the equipment purchased in transaction d. k. The company paid $1,600 cash for the office secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Check my work View previous are Equity Office Cash - Accounts Receivable Office Supplies One Suite - Accounts Payable Common Stock - Dividends - Revenues - Expenses Equipment $ $ 35.0001 - 60,000 147.000 13.000 + 16,000) - 1 7,000 47.000 47 000 0 . 96.000 - 47.000 35 000 . 60001 - 42.000 1.3001 - 43 3001 - 1. 1..0. ol. 35001 - 3.500 0 47000 4800 96000 - 0 7,000 1980) - 6,020 . 3 .500 43.300 47000 4300 600D 0 0 4200. 4.2001 3,900 43.300 47000 - 4.200. 4 47000 4800 6.000 - 00 . 43300 - - (1.4001 - 350. . 300 - . 3.500 47000 - 4800 - 96.000- 4200 ( 6,020 + 8.000 14,020 - (1400) - 12.620 3.200 15,820 + (650) + 15,170 + (1.600) - 13570 . 0) 4200 - 1.2001 - 1,000 - - - - 43.300 47.000 - 0.000 - (1,400) 4,200 (960) 4,000 (650) 4,150 TL 1,000 3,500 43300 - 47000 - 90,000 (1.400) 4.200 - . - . 1-D - - - (980) (1600) 2.500) R S 1000 $ 3.500 S 43300 - $ 47.000 = $ 4,150 $ 5.000 - (1.400) 3 .200 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Market Instruments Analysis And Valuation

Authors: M. Choudhry, D. Joannas, G. Landuyt, R. Pereira, R. Pienaar

3rd Edition

0230576036, 9780230576032

More Books

Students also viewed these Accounting questions

Question

1. Build trust and share information with others.

Answered: 1 week ago