Question

A Bank of America Saved Help Save & Exit Su Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner invested $68,000 cash in the company along with equipment that had a $29,000 market value in exchange for its common stock b. The company paid $2,100 cash for rent of office space for the month. C. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $1,600 cash earned. e. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. f. The company purchased additional equipment for $6,100 cash. g. The company paid an assistant $3,000 cash as wages for the month. h. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e. I. The company paid $10,000 cash to settle the liability created in transaction c. J. The company paid $1,100 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on individual items of the accounting equation (Enter decreases to account balances with a minus sign.) + Equity Assets = Liabilities Accounts Receivable + Equipment = Accounts Payable Cash + Common Stock Dividends + Revenues - Expenses Prey 1 of 1 Next

Answer 1

Date	Asset					=	Liabilities	+	Equity
	cash	+	Accounts receivable	+	Equipment	=	Accounts payable	+	Common stock	-	Dividend	+	revenue	-	expense
a	68000		0		29000		0		97000		0		0		0
Bal	68000		0		29000		0		97000		0		0		0
b	-2100		0		0		0		0		0		0		2100
Bal	65900		0		29000		0		97000		0		0		2100
c	0		0		10000		10000		0		0		0		2100
Bal	65900		0		39000		10000		97000		0		0		2100
d	1600		0		0		0		0		0		1600		0
Bal	67500		0		39000		10000		97000		0		1600		2100
e	0		9000		0		0		0		0		9000		0
Bal	67500		9000		39000		10000		97000		0		10600		2100
f	-6100		0		6100		0		0		0		0		0
Bal	61400		9000		45100		10000		97000		0		10600		2100
g	-3000		0		0		0		0		0		0		3000
Bal	58400		9000		45100		10000		97000		0		10600		5100
h	5300		-5300		0		0		0		0		0		0
Bal	63700		3700		45100		10000		97000		0		10600		5100
i	-10000		0		0		-10000		0		0		0		0
Bal	53700		3700		45100		0		97000		0		10600		5100
j	-1100		0		0		0		0		1100		0		0
Bal	52600	+	3700	+	45100	=	0	+	97000	-	1100	+	10600	-	5100