Nova communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: ASSETS = LIABILITIES + Owner’s equity Cash + Land + Building + Office Equipment= Note Payable+ Account Payable+ M.Sajjad Capital Balances (a) $37,000 $95,000 $125,000 $51,250 $80,000 $28,250 $200,000 Early in January, the following transactions were carried out by nova communication: 1. M.sajjad, the owner, deposited $25,000 of personal funds into the business’s bank account. 2. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500. 3. Bought several computer systems on credit for $8,500(30 day open account) 4. Obtained a loan from capital bank in the amount of $10,000.signed a note payable. 5. Paid the $28,250 account payable owed as of December 31. Instruction: a. List the December 31 balances of asset, liabilities and owner’s equity in tabular from shown b. Record the effects of each of the each of the five transactions in the format illustrated on page 53.show totals for all columns after each transaction. Recording the effects of business transaction

Name: Nova communications was organized on December 1 of the current year an
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Description: Nova communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: ASSETS =

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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Nova communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: ASSETS = LIABILITIES + Owner’s equity Cash + Land + Building + Office Equipment= Note Payable+ Account Payable+ M.Sajjad Capital Balances (a) $37,000 $95,000 $125,000 $51,250 $80,000 $28,250 $200,000 Early in January, the following transactions were carried out by nova communication: 1. M.sajjad, the owner, deposited $25,000 of personal funds into the business’s bank account. 2. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500. 3. Bought several computer systems on credit for $8,500(30 day open account) 4. Obtained a loan from capital bank in the amount of $10,000.signed a note payable. 5. Paid the $28,250 account payable owed as of December 31. Instruction: a. List the December 31 balances of asset, liabilities and owner’s equity in tabular from shown b. Record the effects of each of the each of the five transactions in the format illustrated on page 53.show totals for all columns after each transaction. Recording the effects of business transaction

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