The following information apples to the questions displayed

The following information apples to the questions displayed below On September 1, Pat Hopkins established On a Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $18,000 for 1,800 shares of OCC. On September 8, oCC borrowed $39,500 from a bank, promising to repay the bank in two years. On September 10, oCC wrote a check for $19,500 to acquire computer equipment. On September 15, OCC receved $1.250 of supplies purchased on account and, on September 16, paid $3,200 for September rent. Through September 22, OCC billed its customers for $12.150 of services, of which OCC collected $8,600 in cash. On September 28, OCC pald $560 for Internet and phone service this month. On September 29, OCC paid wages of $5.400 for the month. Finally, on September 30. OCC submitted its electricity meter reading online and determined that the total charges for the month will be $750. This amount will be paid on October 14 through a preauthorzed online payment value 3.00 points Required: 1. Indicate the accounting equation effects of the September events, using table below Reference each 0 Type here to search

Solution

1.

2.

3-a. Preliminary Net Income: $2240

Total expenses = Rent expense $3200 + Internet and telephone expense $560 + Wages expense $5400 + Electricity expense $750 = $9910

Preliminary net income = Service revenue $12150 - Total expenses $9910 = $2240

3-b. Yes

	Assets	=	Liabilities	+	Stockholders\' Equity
Sep-01	Cash	18000					Common stock	18000
Sep-08	Cash	39500		Note payable	39500
Sep-10	Computer equipment	19500
	Cash	-19500
Sep-15	Supplies	1250		Accounts payable	1250
Sep-16	Cash	-3200					Rent expense	-3200
Sep-22	Cash	8600					Service revenue	12150
	Accounts receivable	3550
Sep-28	Cash	-560					Internet and telephone expense	-560
Sep-29	Cash	-5400					Wages expense	-5400
Sep-30					750		Electricity expense	-750