Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in accounting equation format): Assets = Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Office Equip. + Electrical Equip. = Accounts Payable + Larry Power, Capital $35,000 + $7,500 + $2,400 + $33,000 + $16,500 = $23,000 + $71,400 During November, the following occurred: Nov. 1 Rented office space and paid cash for the month’s rent of $7,700. 3 Purchased electrical equipment for $23,000 from an electrician who was going out of business, by using $12,500 in personal funds and agreeing to pay the balance in 30 days. 5 Purchased office supplies by paying $2,300 cash. 6 Completed electrical work and immediately collected $2,500 for doing the work. 8 Purchased $5,700 of office equipment on credit. 15 Completed electrical work on credit in the amount of $6,500. 16 Interviewed and hired a part-time electrician who will be paid $5,800 each month. He will begin work in three weeks. 18 Purchased $1,500 of office supplies on credit. 20 Paid for the office equipment purchased on November 8. 24 Billed a client $5,050 for electrical work; the balance is due in 30 days. 28 Received $6,500 for the work completed on November 15. 30 Paid the office assistant’s salary of $4,900. 30 Paid the monthly utility bills of $4,100. 30 Power withdrew $1,900 from the business for personal use.
Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in accounting equation format): Assets = Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Office Equip. + Electrical Equip. = Accounts Payable + Larry Power, Capital $35,000 + $7,500 + $2,400 + $33,000 + $16,500 = $23,000 + $71,400 During November, the following occurred: Nov. 1 Rented office space and paid cash for the month’s rent of $7,700. 3 Purchased electrical equipment for $23,000 from an electrician who was going out of business, by using $12,500 in personal funds and agreeing to pay the balance in 30 days. 5 Purchased office supplies by paying $2,300 cash. 6 Completed electrical work and immediately collected $2,500 for doing the work. 8 Purchased $5,700 of office equipment on credit. 15 Completed electrical work on credit in the amount of $6,500. 16 Interviewed and hired a part-time electrician who will be paid $5,800 each month. He will begin work in three weeks. 18 Purchased $1,500 of office supplies on credit. 20 Paid for the office equipment purchased on November 8. 24 Billed a client $5,050 for electrical work; the balance is due in 30 days. 28 Received $6,500 for the work completed on November 15. 30 Paid the office assistant’s salary of $4,900. 30 Paid the monthly utility bills of $4,100. 30 Power withdrew $1,900 from the business for personal use.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 4SEB: EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first...
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Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in
Assets | = | Liabilities | + | Equity | ||||||||
Cash | + | + | Office Supplies | + | Office Equip. | + | Electrical Equip. | = | Accounts Payable | + | Larry Power, Capital | |
$35,000 | + | $7,500 | + | $2,400 | + | $33,000 | + | $16,500 | = | $23,000 | + | $71,400 |
During November, the following occurred:
Nov. | 1 | Rented office space and paid cash for the month’s rent of $7,700. |
3 | Purchased electrical equipment for $23,000 from an electrician who was going out of business, by using $12,500 in personal funds and agreeing to pay the balance in 30 days. | |
5 | Purchased office supplies by paying $2,300 cash. | |
6 | Completed electrical work and immediately collected $2,500 for doing the work. | |
8 | Purchased $5,700 of office equipment on credit. | |
15 | Completed electrical work on credit in the amount of $6,500. | |
16 | Interviewed and hired a part-time electrician who will be paid $5,800 each month. He will begin work in three weeks. | |
18 | Purchased $1,500 of office supplies on credit. | |
20 | Paid for the office equipment purchased on November 8. | |
24 | Billed a client $5,050 for electrical work; the balance is due in 30 days. | |
28 | Received $6,500 for the work completed on November 15. | |
30 | Paid the office assistant’s salary of $4,900. | |
30 | Paid the monthly utility bills of $4,100. | |
30 | Power withdrew $1,900 from the business for personal use. |
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