Lita Lopez started Biz Consulting, a new business, and completed the following t
ID: 2605230 • Letter: L
Question
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
The company purchased an office suite for $40,000 cash.
The company purchased office equipment for $15,000 cash.
The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
The company completed a financial plan for a client and billed that client $2,800 for the service.
The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
Lita Lopez withdrew $3,275 cash from the company for personal use.
The company received $1,800 cash as partial payment from the client described in transaction f.
The company made a partial payment of $700 cash on the equipment purchased in transaction d.
The company paid $1,800 cash for the office secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
The company purchased an office suite for $40,000 cash.
The company purchased office equipment for $15,000 cash.
The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
The company paid a local newspaper $500 cash for printing an announcement of the office's opening.
The company completed a financial plan for a client and billed that client $2,800 for the service.
The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
Lita Lopez withdrew $3,275 cash from the company for personal use.
The company received $1,800 cash as partial payment from the client described in transaction f.
The company made a partial payment of $700 cash on the equipment purchased in transaction d.
The company paid $1,800 cash for the office secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)
Explanation / Answer
Solution :- (All Amount in $)
Cash Receivable Supplies Equipment Building Payable Note Payable Common stock Retained earning Revenues Expenses 1 70000 10000 80000 2 (40000) 40000 3 (15000) 15000 4 1200 1700 2900 5 (500) 500 6 2800 2800 7 4000 4000 8 (3275) (3275) 9 1800 (1800) 10 (700) (700) 11 (1800) 1800 Total 14525 1000 1200 26700 40000 2200 80000 (3275) 6800 2300Related Questions
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