Unisource Company started the first year of operations with $2,000 in cash and c

Question

Unisource Company started the first year of operations with $2,000 in cash and common stock. During 2010, the Unisource Company eamed $4,600 of revenue on account. The company collected $4,200 cash from accounts receivable and paid $2,850 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 Capital + Retained Earnings Account Account Account Account

Explanation / Answer

CAsh balance at end = 2000+4200-2850 = 3450

Total shareholders equity = 2000+1750 = 3750

Net income = Revenue - expense = 4600-2850 =1750

Assets = Liabilities + Contributed capital + Retained earnings 2000 Cash 0 2000 Common stock 1750 Increase 0 0 1750 Increase

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