Ming Chen started a business and had the following transactions in June. Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock. The company paid $2,100 cash for rent of office space for the month. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). The company completed work for a client and immediately collected $1,600 cash. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. The company purchased additional equipment for $6,100 cash. The company paid an assistant $3,000 cash as wages for the month. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e. The company paid $10,000 cash to settle the liability created in transaction c. The company paid $1,100 cash in dividends to the owner (sole shareholder).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Ming Chen started a business and had the following transactions in June.

  1. Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock.
  2. The company paid $2,100 cash for rent of office space for the month.
  3. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
  4. The company completed work for a client and immediately collected $1,600 cash.
  5. The company completed work for a client and sent a bill for $9,000 to be received within 30 days.
  6. The company purchased additional equipment for $6,100 cash.
  7. The company paid an assistant $3,000 cash as wages for the month.
  8. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e.
  9. The company paid $10,000 cash to settle the liability created in transaction c.
  10. The company paid $1,100 cash in dividends to the owner (sole shareholder).

Required:
Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

a.
b.
Balance after a and b
C.
Balance after c
d.
Balance after d
e.
Balance after e
f.
Balance after f
g.
Balance after g
h.
Balance after h
i.
.
Cash
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Accounts
Receivable
+ Equipment =
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Accounts
Payable
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Common
Stock
I
Dividends
+ Revenues
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
-
Expens
Transcribed Image Text:a. b. Balance after a and b C. Balance after c d. Balance after d e. Balance after e f. Balance after f g. Balance after g h. Balance after h i. . Cash + + + + + + + + + + + + + + + + + Accounts Receivable + Equipment = + + + + + + + + + + + + + + + + = = = = = = = = = = = = = = = = Accounts Payable + + + + + + + + + + + + + + + + + Common Stock I Dividends + Revenues + + + + + + + + + + + + + + + + - Expens
i.
Balance after i
j.
Balance after j
+
+
+
+
+
+
+
=
=
=
+
+
+
+
+
+
+
Transcribed Image Text:i. Balance after i j. Balance after j + + + + + + + = = = + + + + + + +
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education