Question

Problem 2.2A (Static) Analyzing the effects of transactions on the accounting equation. LO 2-1, 2-2, 2-3 Carter Wilson is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm's financial records showed the following assets, liabilities, and owner's equity. Cash Accounts receivable Office furniture Auto Accounts payable Carter Wilson, Capital Revenue Expenses $144,000 37,000 85,000 55, eee 30,6ee 214, see 131,600 55,700 TRANSACTIONS 1. Performed services for $14,400 on credit 2. Paid $3,640 in cash for new office chairs, 3. Received $27.600 in cash from credit clients. 4. Paid $1,820 in cash for telephone service. 5. Sent a check for $10.400 in partial payment of the amount due creditors. 6. Paid salaries of $21.160 in cash ::: Nav!

Answer 1

	Assets				Liabilities	Owners equity	Income statement
	Cash	Accounts receivable	Office furniture	Auto	Accounts payable	Carter wilson, capital	Revenues	expenses	net income
1		$                        14,400				$                          14,400	$    14,400		$       14,400
2	$    (3,640)		$                  3,640
3	$    27,600	$                      (27,600)
4	$    (1,820)					$                          (1,820)		$      1,820	$       (1,820)
5	$ (10,400)				$                 (10,400)
6	$ (21,160)					$                        (21,160)		$   21,160	$     (21,160)
7	$    (2,570)					$                          (2,570)		$      2,570	$       (2,570)
8	$    25,800					$                          25,800	$    25,800		$       25,800
9	$    (5,320)					$                          (5,320)		$      5,320	$       (5,320)
10		$                        27,600				$                          27,600	$    27,600		$       27,600
	$       8,490	$                        14,400	$                  3,640	$       -	$                 (10,400)	$                          36,930	$    67,800	$   30,870	$       36,930

Cash (144,000-$3,640+$27,600-1,820-10,400-$21,160-$2,570+$25,800-$5,320)	$   152,490
Accounts receivable ($37,000+$14,400-$27,600+$27,600)	$     51,400
Office furniture ($85,000+$3,640)	$     88,640
Auto	$     55,000
Total assets	$   347,530

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