Ming Chen started a business and had the following transactions in June.Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock.The company paid $2,100 cash for rent of office space for the month.The company purchased $10,000 of additional equipment on credit (payment due within 30 days).The company completed work for a client and immediately collected $1,600 cash.The company completed work for a client and sent a bill for $9,000 to be received within 30 days.The company purchased additional equipment for $6,100 cash.The company paid an assistant $3,000 cash as wages for the month.The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e.The company paid $10,000 cash to settle the liability created in transaction c.The company paid $1,100 cash in dividends to the owner (sole shareholder).Required:Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) a.b.Balance after a and bC.Balance after cd.Balance after de.Balance after ef.Balance after fg.Balance after gh.Balance after hi..Cash+++++++++++++++++AccountsReceivable+ Equipment =++++++++++++++++================AccountsPayable+++++++++++++++++CommonStockIDividends+ Revenues++++++++++++++++-Expens i.Balance after ij.Balance after j+++++++===+++++++

Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

Answered: Ming Chen started a business and had…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 2EA: Consider the following accounts, and determine if the account is an asset (A), a liability (L), or...

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Question

Ming Chen started a business and had the following transactions in June.

Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock.
The company paid $2,100 cash for rent of office space for the month.
The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
The company completed work for a client and immediately collected $1,600 cash.
The company completed work for a client and sent a bill for $9,000 to be received within 30 days.
The company purchased additional equipment for $6,100 cash.
The company paid an assistant $3,000 cash as wages for the month.
The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e.
The company paid $10,000 cash to settle the liability created in transaction c.
The company paid $1,100 cash in dividends to the owner (sole shareholder).

Required:
Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

a.
b.
Balance after a and b
C.
Balance after c
d.
Balance after d
e.
Balance after e
f.
Balance after f
g.
Balance after g
h.
Balance after h
i.
.
Cash
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Accounts
Receivable
+ Equipment =
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Accounts
Payable
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Common
Stock
I
Dividends
+ Revenues
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
-
Expens

i.
Balance after i
j.
Balance after j
+
+
+
+
+
+
+
=
=
=
+
+
+
+
+
+
+

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