Lindsey\'s Company started the first year of operations with $4,000 in cash and

Question

Lindsey's Company started the first year of operations with $4,000 in cash and common stock. During 2010, the Lindsey's Company earned $4,800 of revenue on account. The company collected $4,100 cash from accounts receivable and paid $2,400 cash for operating expenses

Enter the transactions into the accounting equation.

1.

What happened to total assets (increase or decrease and by how much)?

2.

What is the cash balance on December 31, 2010?

3.

What is the total shareholders' equity on December 31, 2010?

4.

What is net income for the year?

1.

What happened to total assets (increase or decrease and by how much)?

2.

What is the cash balance on December 31, 2010?

3.

What is the total shareholders' equity on December 31, 2010?

4.

What is net income for the year?

Lindsey's Company started the first year of operations with $4,000 in cash and common stock. During 2010, the Lindsey's Company eamed $4,800 of revenue on account. The company collected $4,100 cash from accounts receivable and paid $2,400 cash for operating expenses Enter the transactions into the accounting equation 1. What happened to total assets (increase or decrease and by how much)? 2. What is the cash balance on December 31, 2010? 3. What is the total shareholders' equity on December 31, 2010? 4. What is net income for the year? Enter the transactions into the accounting equation. Begin by entering the beginning balances. Then, enter each transaction in the order they occurred. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities +Contributed Capita + Retained Earnings Account Account Account Account

Explanation / Answer

1) Total Assets ;-

= Cash + Accounts Receivable

= ($4000 + $4100 - $2400) + ($4800 - $4100)

= $5700 + $700

= $6400

2) Cash Balance on Dec. 31, 2010 :-

3) Total Shareholders Equity :-

= Common Stock + Net Income

= $4000 + ($4800 - $2400)

= $4000 + $2400

= $6400

4) Net Income :-

= Revenue - Operating Expense

= $4800 - $2400

= $2400

Particulars Amount($) Cash From Common Stock 4000 Add : Cash from Accounts Receivable 4100 Less : Operating Expenses Paid (2400) Cash Balance on Dec. 31 $5700

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.