Question: Solve the question shown in the image and upload the answer in the attachment. a) Transaction analysis b) Income statement c) Balance sheet Susan's Shoe Shop opened on January 1. The following transactions took placeduring the first month:1. Deposited $30,000 in the firm's checking account.2. Purchased shoes, boots, socks, and other inventory for $45,000 on account.3. Purchased display shelving, chairs, and other fixtures for $10,000 cash and$40,000 on account. Assume a useful life of five years.4. Obtained $20,000 and signed a three-year, $20,000 bank loan at 8% annual in-terest.5. Had sales revenue during January of $75,000. Of this amount, $25,000 wasreceived in cash and the balance was on account.6. The cost of the merchandise sold in item 5 was $32,000.7. Paid $10,000 to each of two different creditors.8. Signed an application for a one-year insurance policy and paid the year's pre-mium of $2,400.9. Paid three employees a monthly salary of $2,000 each.10.Collected $35,000 from (accounts receivable) customers.RequiredO Analyze these transactions, including any appropriate adjustments, using thebasic accounting equation.OPrepare a simple income statement for the firm.Prepare a simple balance sheet for Susan's Shoe Shop.

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Description: Question: Solve the question shown in the image and upload the answer in the attachment. a) Transaction analysis b) Income statement c) Balance sheet Susan's Shoe Shop opened on January 1. The following transactions took placeduring the first month

Accounting equation is the equation which includes the financial transactions to be presented in the…

Answered: Susan's Shoe Shop opened on January 1.…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter1: Business Transactions (ptrans)

Section: Chapter Questions

Problem 3R: On June 1 of the current year, Wilson Wood opened Woodys Web Services. This sole proprietorship had...

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Question: Solve the question shown in the image and upload the answer in the attachment. a) Transaction analysis b) Income statement c) Balance sheet

Susan's Shoe Shop opened on January 1. The following transactions took place
during the first month:
1. Deposited $30,000 in the firm's checking account.
2. Purchased shoes, boots, socks, and other inventory for $45,000 on account.
3. Purchased display shelving, chairs, and other fixtures for $10,000 cash and
$40,000 on account. Assume a useful life of five years.
4. Obtained $20,000 and signed a three-year, $20,000 bank loan at 8% annual in-
terest.
5. Had sales revenue during January of $75,000. Of this amount, $25,000 was
received in cash and the balance was on account.
6. The cost of the merchandise sold in item 5 was $32,000.
7. Paid $10,000 to each of two different creditors.
8. Signed an application for a one-year insurance policy and paid the year's pre-
mium of $2,400.
9. Paid three employees a monthly salary of $2,000 each.
10.Collected $35,000 from (accounts receivable) customers.
Required
O Analyze these transactions, including any appropriate adjustments, using the
basic accounting equation.
OPrepare a simple income statement for the firm.
Prepare a simple balance sheet for Susan's Shoe Shop.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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