In: Accounting
Problem 1-04A a-c (Part Level Submission) (Video)
Maria Miller started her own consulting firm, Sheridan Consulting, on May 1, 2020. The following transactions occurred during the month of May.
May 1 | Trixie invested $7,500 cash in the business. | |
2 | Paid $850 for office rent for the month. | |
3 | Purchased $500 of supplies on account. | |
5 | Paid $130 to advertise in the County News. | |
9 | Received $4,400 cash for services performed. | |
12 | Withdrew $1,200 cash for personal use. | |
15 | Performed $5,600 of services on account. | |
17 | Paid $2,600 for employee salaries. | |
20 | Made a partial payment of $300 for the supplies purchased on account on May 3. | |
23 | Received a cash payment of $4,100 for services performed on account on May 15. | |
26 | Borrowed $4,700 from the bank on a note payable. | |
29 | Purchased equipment for $4,000 on account. | |
30 |
Paid $350 for utilities. (a) Show the effects of the previous transactions on the accounting equation. (If a transaction results in a decrease in Assets, Liabilities or Owners Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) |