a. Lita Lopez invested $60,000 cash and equipment valued at $31,000 in the company in exchange for its common st b. The company purchased a building for $43,000 cash. c. The company purchased equipment for $5,300 cash. d. The company purchased $3,600 of supplies and $1,500 of equipment on credit. e. The company paid $870 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,100 for the service. g. The company designed a financial plan for another client and immediately collected a $8,400 cash fee. h. The company paid $1,600 cash in dividends to the owner (sole shareholder). i. The company received $3,100 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $750 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the 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.

a. Lita Lopez invested $60,000 cash and equipment valued at $31,000 in the company in exchange for its common st b. The company purchased a building for $43,000 cash. c. The company purchased equipment for $5,300 cash. d. The company purchased $3,600 of supplies and $1,500 of equipment on credit. e. The company paid $870 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,100 for the service. g. The company designed a financial plan for another client and immediately collected a $8,400 cash fee. h. The company paid $1,600 cash in dividends to the owner (sole shareholder). i. The company received $3,100 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $750 cash on the equipment purchased in transaction d. k. The company paid $2,500 cash for the 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.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

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