## Required Tasks: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 2: Determine the Company’s Net IncomeIn the text box provided, input the net income of the company.- **Net Income**: *[Input Field]*Navigation buttons are available to switch between different requirements:- **Required 1** (Button to switch to Required 1)- **Required 2** (Current section, button is inactive)Use these buttons to move between different parts of the task as needed to complete your response. **Biz Consulting: Recording First Year Transactions**Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.1. Lita Lopez invested $70,000 cash and equipment valued at $34,000 in the company in exchange for its common stock.2. The company purchased a building for $45,000 cash.3. The company purchased equipment for $5,500 cash.4. The company purchased $3,800 of supplies and $1,900 of equipment on credit.5. The company paid $860 cash for advertising expenses.6. The company completed a financial plan for a client and billed that client $4,700 for the service.7. The company designed a financial plan for another client and immediately collected a $8,600 cash fee.8. The company paid $1,700 cash in dividends to the owner (sole shareholder).9. The company received $3,700 cash as partial payment from the client described in transaction f.10. The company made a partial payment of $950 cash on the equipment purchased in transaction d.11. The company paid $1,900 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.**Instructions:**Complete this question by entering your answers in the tabs below.1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign -)**Accounting Equation Table:**The table is structured to track the impact of each transaction on the various components of the accounting equation: Assets, Liabilities, and Equity. Each component is subdivided into key account items such as Cash, Accounts Receivable, Supplies, Equipment, Building, Accounts Payable, Common Stock, Dividends, Revenues, and Expenses.- **Assets:** - Cash - Accounts Receivable - Supplies - Equipment - Building- **Liabilities:** - Accounts Payable- **Equity:** - Common Stock - Dividends - Revenues - ExpensesEach transaction (a to l) alters the balances in these accounts. The balance after each transaction helps to understand how the event affects the company’s financial position.**Transaction Effects on the Accounting Equation:

Name: ## Required Tasks:1. **Enter the amount of each transaction on indivi
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Description: ## Required Tasks: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 2: Determine the Co

The accounting equation is based on the principle of double-entry bookkeeping, which ensures that…

Business

Accounting

. Lita Lopez invested $70,000 cash and equipment valued at $34,000 in the company in exchange for its common stock. D. The company purchased a building for $45,000 cash. . The company purchased equipment for $5,500 cash. 1. The company purchased $3,800 of supplies and $1,900 of equipment on credit. e. The company paid $860 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,700 for the service. 1. The company designed a financial plan for another client and immediately collected a $8,600 cash fee. . The company paid $1,700 cash in dividends to the owner (sole shareholder). i. The company received $3,700 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $950 cash on the equipment purchased in transaction d. . The company paid $1,900 cash for the secretary's wages for this period. required: Enter the amount of each transaction on individual items of the accounting equation. Determine the company's net income.

. Lita Lopez invested $70,000 cash and equipment valued at $34,000 in the company in exchange for its common stock. D. The company purchased a building for $45,000 cash. . The company purchased equipment for $5,500 cash. 1. The company purchased $3,800 of supplies and $1,900 of equipment on credit. e. The company paid $860 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,700 for the service. 1. The company designed a financial plan for another client and immediately collected a $8,600 cash fee. . The company paid $1,700 cash in dividends to the owner (sole shareholder). i. The company received $3,700 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $950 cash on the equipment purchased in transaction d. . The company paid $1,900 cash for the secretary's wages for this period. required: Enter the amount of each transaction on individual items of the accounting equation. Determine the company's net income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In June 2021, Wanda Fonda organized a corporation to provide drone photography services. Thecompany, called Drone Queen Inc., began operations immediately. Transactions during the month ofJune were as follows:June 1 The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for$60,000 cash.June 2 Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash downpayment and issued a note payable for the remaining balance.June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month.June 15 Billed customers $8,320 for aerial photographs taken during the first half of June.June 15 Paid $5,880 in salaries earned by employees during the first half of June.June 18 Paid Henry's Hangar $1,890 for maintenance and repair services on the companyplane.June 25 Collected $4,910 of the amounts billed to customers on June 15.June 30 Billed customers $16,450 for aerial photographs taken during the second half of themonth.June 30 Paid $6,000 in…
Assume the following: Lomo Engineering Company had the following transactions: Jan-01 Issued capital stock for $965,000. Jan-01 Purchased a Packaging Equipment for $20,000. Jan-01 Purchased an Insurance Policy (1 year) for $30,000. Jan-03 Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05 Purchased $28,000 of inventory on account. Jan-07 Sold inventory costing $6,000 for $50,000 on account. Jan-11 Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15 Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,500. Jan-23 Paid wages for $13,000. Jan-25 Collect $8,000 in bank interest. Jan-30 Paid $12,590 due to income taxes. Required: Record the above transactions in General Journal (Journal Entries). Record the transactions in General Ledger format (T-Accounts). Prepare a…
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Husky Company has provided the following information for its most recent year of operation: Cash collected from customers totaled $90,000. Cash borrowed from banks totaled $33,100. Cash paid to employees for salaries totaled $32,800. Cash received from selling Husky common stock to stockholders totaled $48,000. Cash payments to banks for repayment of money borrowed totaled $8,200. Cash paid to suppliers totaled $8,600. Land costing $26,000 was sold for $26,000 cash. Cash paid for dividends to stockholders totaled $4,000. How much was Husky's cash flow from operating activities?
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Label each transaction as an Operating Activity, Investing activity, or Financing Activity and if it is an inflow or (outflow). 1. Drake issued 10,000 shares of common stock for $40,000 2. Drake collected $80,000 from customers on Accounts Receivables 3. Drake Paid $5,000 in interest payments on their bonds 4. Drake purchased a new copy machine and paid cash of $35,000 5. Drake sold their old copy machine for $2,000 cash 6. Drake paid a $4,500 dividend to shareholders 7. Drake borrowed $40,000 cash from the bank on December 28,2019 (payments begin 1/28/20) 8. Drake purchased a patent for $15,000 cash 9. Drake paid $65,000 cash in wages during 2019 10. Drake paid 2018 taxes due in the amount of $10,500 on April 15, 2019 Indicate the total net cashflow (Inflow-Outflow) from above for each classification: Operating Investing Financing