1) Beckowsik Company began business in June and completed the following transact
ID: 2574184 • Letter: 1
Question
1) Beckowsik Company began business in June and completed the following transactions A) Received $50,000 cash and issued common stock to the stockholders B) Purchased supplies for $5,000 on account C)Received and paid utilities bill of $2,000 for the month D) Performed services for a customer and billed the customer $6,000 E) Received $3,000 from the customer on account F) Paid for the supplies purchased on account G)Purchased equipment for $10,000 on account H) Declared and paid dividends of $2,200 Required: 1. Record the effects of the above transactions on the accounting equation 2. Prove the accounting equation using the final balances in the accounts 2) Indicate whether the account is an asset (A), liability (L), stockholders' equity (SE), revenue (R) or expense (E) account. Also indicate if the account would appear on the Balance Sheet (BS), Income Statement (IS), Statement of Cash Flows (CF) or the Statement of Retained Earnings (SRE) FINANCIAL ACCOUNT I. Equipment 2. Common Stock 3. Accounts Payable YPE OF ACCOUNT STATEMENT ervice Revenue 5. Salary Expense 6. Invento 7. Accounts Receivabl 8. Retained Earni 9. Notes Payable 10.Prepaid Insurance 11.Dividends asExplanation / Answer
The Accounting Equation is: Assets= Liablities + Capital
2000
(2000)
3000
(3000)
Classification of acccounts
1.Equipment - Asset, balance sheet
2.common stock - shareholders equity, balance sheet
3. accounts payable - liablity, balance sheet
4. service revenue - Income, income statement
5. salary expense - Expense, income statement
6. inventory - Asset, balance sheet and income statement both
7. accounts receivable - assets, balance sheet
8. retained earnings- shareholders equity, balance sheet and statement of retained earnings
9. notes payable - Liablities, balance sheet
10. prepaid insurance - Assets, balance sheet
11. dividends - Shareholders equity, statement of retained earnings
12. cash - asset, balance sheet
Transaction Assets = Liablities + Capital Stock issue 50000 50000 purchased supplies 5000 5000 Utilities2000
(2000)
Service revenue on account 6000 6000 Received from customer on account3000
(3000)
paid for supplies (5000) (5000) Equipment purchased 10000 10000 Dividends paid (2200) (2200) Total 63,800 10,000 53,800Related Questions
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