Redlands Inc. began business on January 1, 2020. Redlands had the following four transactions during 2020. 1. Purchased equipment for $20. 2. Earned $30 of service revenue and collected it all in cash. 3. Incurred $20 of operating expenses. Paid $5 in cash and set up an account payable for the remaining $15. 4. Recorded $5 of depreciation on the equipment. Complete the income statement and balance sheet effects for the above transactions in the following table. Negative numbers are in parentheses () indicating the element is decreasing (note that an increase in an expense would be positive). Select "0" for all cells unaffected by the transaction. The first transaction has been completed for you. Trans Assets Liabilities S/Equity Revenues Expenses Net Income 1. 20 (20) 0 0 0 0 0 2. 3. 4.
Redlands Inc. began business on January 1, 2020. Redlands had the following four transactions during 2020.
1. Purchased equipment for $20.
2. Earned $30 of service revenue and collected it all in cash.
3. Incurred $20 of operating expenses. Paid $5 in cash and set up an account payable for the remaining $15.
4. Recorded $5 of
Complete the income statement and
|
Trans |
Assets |
Liabilities |
S/Equity |
|
Revenues |
Expenses |
Net Income |
|
1. |
20 (20) |
0 |
0 |
|
0 |
0 |
0 |
|
2. |
|
|
|
|
|
|
|
|
3. |
|
|
|
|
|
|
|
|
4. |
|
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
