Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions: a. Owner invested $70,000 cash in the company along with equipment that had a $20,000 market value in exchange for common stock. b. The company paid $2,000 cash for rent of office space for the month. c. The company purchased $25,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $3,000 cash earned. e. The company completed work for a client and sent a bill for $9,500 to be received within 30 days. f. The company purchased additional equipment for $5,000 cash. g. The company paid an assistant $3,500 cash as wages for the month. h. The company collected $6,500 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $25,000 cash to settle the liability created in transaction c. j. The company paid $1,500 cash dividends to the owner
Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions: a. Owner invested $70,000 cash in the company along with equipment that had a $20,000 market value in exchange for common stock. b. The company paid $2,000 cash for rent of office space for the month. c. The company purchased $25,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $3,000 cash earned. e. The company completed work for a client and sent a bill for $9,500 to be received within 30 days. f. The company purchased additional equipment for $5,000 cash. g. The company paid an assistant $3,500 cash as wages for the month. h. The company collected $6,500 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $25,000 cash to settle the liability created in transaction c. j. The company paid $1,500 cash dividends to the owner
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 13EB: Marc Associates employs Janet Evanovich at its law firm. Her gross income for June is $7,500....
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Leora Diamond began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Diamond (the owner) completed these transactions: |
a. | Owner invested $70,000 cash in the company along with equipment that had a $20,000 market value in exchange for common stock. |
b. | The company paid $2,000 cash for rent of office space for the month. |
c. | The company purchased $25,000 of additional equipment on credit (payment due within 30 days). |
d. | The company completed work for a client and immediately collected the $3,000 cash earned. |
e. | The company completed work for a client and sent a bill for $9,500 to be received within 30 days. |
f. | The company purchased additional equipment for $5,000 cash. |
g. | The company paid an assistant $3,500 cash as wages for the month. |
h. | The company collected $6,500 cash as a partial payment for the amount owed by the client in transaction e. |
i. | The company paid $25,000 cash to settle the liability created in transaction c. |
j. | The company paid $1,500 cash dividends to the owner. |
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