Concept explainers
Using the
Meg McKinney opened a public relations firm called Solid Gold on August 1,2018. The following amounts summarize her business on August 31,2018:
Learning Objective 4
Cash $13,600
During September 2018, the business completed the following transactions:
a. Meg McKinney contributed $17,000 cash in exchange for capital.
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. McKinney withdrew $1,600.
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 1-5.
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Horngren's Accounting (12th Edition)
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College