P141A similar to More Info Cosmo Timmins started a now busin

P1-41A (similar to More Info Cosmo Timmins started a now business, Timmins Gymnastics, and con (Click the loon to view the transactions) Analyze the effects of the transactions on the accounting equation of T Dec 1 Received $26,000 oash from Cosmo in exchange for common 2 Received $2,800 cash from customers for services performed. Analyze the events chronologically, one transaction at a time. Beginning of the transaction on the accounting equation. (Complete only the nece Carry down all balances to the \"Bal lne, including zero balance accou parentheses. Abbreviations used: A/P Accounts Payable; A/R Exp . Expense, Lieb. . Liatites; Of. Sup. Osce Spplies; Sal. = 5 Paid $300 cash for office supplies. 9 Performed services for a customer and billed the custormer for services rendered, $3,000 10 Received $450 invoice for utlties due in two weoks 15 Paid for advertising in the local paper, $476. 20 Paid utility invoice reoeived on December 10 25 Collected cash in full from oustomer billed on December 9 28 Paid rent for the month, $2,600. 28 Paid $1,500 to assistant for wago0s 30 Received $1,200 cash from customers for services performed 31 Cash dividends of $5,500 were paid to stockholders. Print Done Enter any number in the edit fields and then dlick Check Answer 11 parang Check Answer MacBook Air 20 4D FIO 7 5

Solution

31

Note:- Total assets = Total liabilties + total equity {Common stock + [income - expenses] }

	Assets	=	liabilities	+	Equity
									Contr. capital		Retained earnings
	cash	+	A/R	+	off. sup	=	A/P	+	Com stock	-	Div.	+	Serv rev.	-	rent exp.	-	Util exp.	-	sal exp.	-	Adv. exp.
Dec 1	26000								26000
2	2800												2800
5	-300				300
9			3000										3000
10	no transaction will be recorded
15	-475																				475
20	-450																450
25	3000		-3000
28	-2600														2600
28	-1500																		1500
30	1200												1200
31	-5500										5500
Balance	22175	+	0	+	300	=	0	+	26000	-	5500	+	7000	-	2600	-	450	-	1500	-	475