VERITY SIDING CO. Equity Assets Accounts Receivable Liabilities Accounts Equipment Payable Notes Common Stock Cash Payable Dividends Revenues Ex Date May 1 2 2 6 7 8 9 15 17 20 28 31 31 31 5 2. Soo Lin began an Intemet Consulting practice and completed these transactions during April of the current year: April. 1 Invested S100,000 of her personal savings into a checking account opened in the name of the business in exchange for common stock. April 2 Rented office space and paid $1,200 cash for the month of September April 3 Purchased office equipment for $30,000, paying $8,000 cash and agreeing to pay the balance in one year April 4 Purchased office supplies for S750 cash. April 8 Completed work for a client and immediately collected $2,700 cash for the services. April 15 Completed $3,600 services for a client on credit. April 20 Received 3,600 from a client for the work completed on September 15. April 30 Paid the office secretary's monthly salary, $3,000 cash. April 30 The company paid Lin S2,000 as a dividend. Show the effects of the above transactions on the accounting equation of Soo Lin, Consultant. Use the following format for your answers. Date Liabilities Owner Equity Increase=1 Decrease=1 No effect EN Asset FALL 2021 LAB1 1. Verity Siding Company, whose sole stockholder is S. Verity, began operations in May and completed the following transactions during that first month of operations. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 2 12 6 liob. 8 19 S. Verity invested $90,000 cash in the company in exchange for common May 1 stock The company purchased S25,000 in office equipment. It paid $10,000 in cash and signed a note payable promising to pay the $15,000 over the next three vears. The company rented office space and paid $3,000 for the May rent. The company installed new vinyl siding for a customer and immediately collected $5,000 The company paid a supplier $2,000 for siding materials used on the May 6 7 The company purchased a $2,500 copy machine for office use on credit. The company completed work for additional customers on credit in the amount of $16,000 The company paid its employees' salaries $2,300 for the first half of the The company installed new siding for a customer and immediately collected 17 $2,400 The company received $10,000 in payments from the customers billed on May The company paid $1,500 on the copy machine purchased on May 8. It will pay the remaining balance in June The company paid its employees' salaries $2,400 for the second half of the 31 month The company paid a supplier $5,300 for siding materials used on the 31 remaining jobs completed during May. 31 The company paid $450 for this month's utility bill. 15 month 2019. 28
