Question

Anyone know how to fix these problems, please help me, I appreciate it. Thank you

Following is a list of transactions that occurred in January for the Yazma Corporation. a) Issued 500 shares of common stock to a new stockholder who paid $20,000 for those shares. b) Borrowed $15,000 in start-up funds from a local bank, and signed a note promising to repay that amount in two years. c) Purchased new equipment costing $8,000, paying cash. d) Paid rent ($500/month) on office space in advance covering the next six months. e) Bought office furniture costing $4,000, on account. f) Paid $750 for this month's electric bill g) Earned $3,500 by providing services to customers who agree to pay Yazma within 30 days. h) Paid $900 in wages to their employees. REQUIRED: 1. For each transaction, identify the account to be debited and the account to be credited, and the dollar amount for each. 2. For each debit and each credit, identify whether that represents an increase (+) or decrease () to that account balance. EXAMPLE FOR 1 AND 2: z) Purchased a truck on account for $9,000, paying cash. DEBIT CREDIT ACCOUNT AMOUNT INC / DEC ACCOUNTAMOUNT INC/ DEC z) Truck $9,000 Cash S 9,000 3. Calculate the ending balance of the Cash account, assuming Yazma started January with a Cash balance of $32,000. Show your calculation

Answer 1

1 & 2.

		DEBIT			CREDIT
	Transactions	ACCOUNT	AMOUNT	INC/DEC	ACCOUNT	AMOUNT	INC/DEC
a	Issued 500 shares of common stock to new stockholder who paid $20000 for those shares	Cash	20000	+	Common Stock	20000	+
b	Borrowed $1,500 in startsup from local bank, and signed a note promising to repay that amount in two years	Cash	1500	+	Notes Payable	1500	+
c	Purchased new equipment costing $ 8,000 in cash	New equipment	8000	+	Cash	8000	-
d	Paid Rent ($500/month) on office space in advance for six months	Rent	3000	+	Cash	3000	-
e	Paid office furniture costing $ 4,000	Office furniture	4000	+	Cash	4000	-
f	Paid $ 750 for this month's electric bill	Electricity	750	+	Cash	750	-
g	Earnings $ 3,500 by providing services to customers who agree to pay within 30 days	Customer (Debtor)	3500	+	Service	3500	+
h	paid $900 in wages to their employees	wages	900	+	Cash	900	-

3.

CASH ACCOUNT
Opening Balance	$                   32,000
Issued 500 shares of common stock to new stockholder who paid $20000 for those shares	$                   20,000
Borrowed $1,500 in startsup from local bank, and signed a note promising to repay that amount in two years	$                     1,500
Purchased new equipment costing $ 8,000 in cash	$                   (8,000)
Paid Rent ($500/month) on office space in advance for six months	$                   (3,000)
Paid office furniture costing $ 4,000	$                   (4,000)
Paid $ 750 for this month's electric bill	$                       (750)
paid $900 in wages to their employees	$                       (900)
Closing Balance	$                   36,850