The following information apples to the questions displayed below On September 1
ID: 2607723 • Letter: T
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The following information apples to the questions displayed below On September 1, Pat Hopkins established On a Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $18,000 for 1,800 shares of OCC. On September 8, oCC borrowed $39,500 from a bank, promising to repay the bank in two years. On September 10, oCC wrote a check for $19,500 to acquire computer equipment. On September 15, OCC receved $1.250 of supplies purchased on account and, on September 16, paid $3,200 for September rent. Through September 22, OCC billed its customers for $12.150 of services, of which OCC collected $8,600 in cash. On September 28, OCC pald $560 for Internet and phone service this month. On September 29, OCC paid wages of $5.400 for the month. Finally, on September 30. OCC submitted its electricity meter reading online and determined that the total charges for the month will be $750. This amount will be paid on October 14 through a preauthorzed online payment value 3.00 points Required: 1. Indicate the accounting equation effects of the September events, using table below Reference each 0 Type here to searchExplanation / Answer
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3-a. Preliminary Net Income: $2240
Total expenses = Rent expense $3200 + Internet and telephone expense $560 + Wages expense $5400 + Electricity expense $750 = $9910
Preliminary net income = Service revenue $12150 - Total expenses $9910 = $2240
3-b. Yes
Assets = Liabilities + Stockholders' Equity Sep-01 Cash 18000 Common stock 18000 Sep-08 Cash 39500 Note payable 39500 Sep-10 Computer equipment 19500 Cash -19500 Sep-15 Supplies 1250 Accounts payable 1250 Sep-16 Cash -3200 Rent expense -3200 Sep-22 Cash 8600 Service revenue 12150 Accounts receivable 3550 Sep-28 Cash -560 Internet and telephone expense -560 Sep-29 Cash -5400 Wages expense -5400 Sep-30 750 Electricity expense -750Related Questions
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