Question
Use the following transactions as your basis for creating final values for the Basic Accounting Equation at the end of the month for Computer King.
Use the following transactions as your basis for creating final values for the Basic Accounting Equation at the end of the month for Computer King.
a. Jere King deposits $15,000 in a bank account in the name of Computer King.
b. Computer King purchases land for $10,000.
c. Computer Kind purchases supplies for $1,350 from a supplier and agrees to pay in the near future.
d. During the month, $950 is paid to creditors on the account.
e. During the first month of operation, Computer King earns fees of $7,500 receiving the amount in cash.
f. Computer King pays expenses of Salaries ($2,125), Rent ($800), Utilities ($450) and spends $250 creating the goods being sold.
g. At the end of the month an assessment determines that only $550 worth of supplies remain. The rest were consumed as supply expenses.
h. Jere King withdraws $2,000 of his initial investment from the business for personal use.
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