
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Homework
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Question 10 - Chapter 1 Home X
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Required 1 Required 2
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of
operations.
Complete this question by entering your answers in the tabs below.
Content
a. Lita Lopez invested $60,000 cash and equipment valued at $31,000 in the company in exchange for its common
stock.
b. The company purchased a building for $43,000 cash.
c. The company purchased equipment for $5,300 cash.
d. The company purchased $3,600 of supplies and $1,500 of equipment on credit.
e. The company paid $870 cash for advertising expenses.
f. The company completed a financial plan for a client and billed that client $4,100 for the service.
g. The company designed a financial plan for another client and immediately collected a $8,400 cash fee.
h. The company paid $1,600 cash in dividends to the owner (sole shareholder).
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i. The company received $3,100 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $750 cash on the equipment purchased in transaction d.
k. The company paid $2,500 cash for the secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
2. Determine the company's net income.
Enter the amount of each transaction on individual items of the accounting equation.
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Complete this question by entering your answers in the tabs below.
Required 1 Required 2
a.
1. The Company Compania pro VI CIRI GURLITTO IN URL SLIVELL.
g. The company designed a financial plan for another client and immediately collected a $8,400 cash fee.
h. The company paid $1,600 cash in dividends to the owner (sole shareholder).
i. The company received $3,100 cash as partial payment from the client described in transaction f
j. The company made a partial payment of $750 cash on the equipment purchased in transaction d.
k. The company paid $2,500 cash for the secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
2. Determine the company's net income.
Enter the amount of each transaction on individual items of the accounting equation.
Note: Reductions in account balances should be indicated with a minus sign.
b.
Balance
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