FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Meg McKinney opened a public relations firm called Solid Gold on August 1, 2018. The following amounts summarize her business on August 31, 2018
During September 2018, the business completed the following transactions:
a. Received contribution of $17,000 cash from Meg McKinney in exchange for common stock.
b. Performed service for a client and received cash of $800.
c. Paid off the beginning balance of accounts payable.
d. Purchased office supplies from OfficeMax on account, $1,200.
e. Collected cash from a customer on account, $2,000.
f. Cash dividends of $1,600 were paid to stockholders.
g. Consulted for a new band and billed the client for services rendered, $4,500.
h. Recorded the following business expenses for the month:
Paid office rent: $1,000.
Paid advertising: $500.
Analyze the effects of the transactions on the accounting equation of Solid Gold using the format presented in Exhibit 1-6.
![LIABILITIES +
ASSETS
EQUITY
Contributed
Capital
Retained Earnings
+]
- Dividends + Service - Rent - Advertising
Revenue Expense
Cash + Accounts + Office + Land
Receivable Supplies
$0
Bal. $1,900 + $3,200 +
Accounts + Common
Payab'e
Екрense
Stock
$11,900
+ $3,200
$5,000
+$15,000](https://content.bartleby.com/qna-images/question/2fcafc22-d5b3-4e09-8f4f-688368e7e7e9/9cb88d8e-a169-4bf5-9628-2d3ad935c4c8/6aeq3k9.png)
Transcribed Image Text:LIABILITIES +
ASSETS
EQUITY
Contributed
Capital
Retained Earnings
+]
- Dividends + Service - Rent - Advertising
Revenue Expense
Cash + Accounts + Office + Land
Receivable Supplies
$0
Bal. $1,900 + $3,200 +
Accounts + Common
Payab'e
Екрense
Stock
$11,900
+ $3,200
$5,000
+$15,000
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