Homework SourseAssume Downcom was organized on May 1 to compete with Despai
Assume Down.com was organized on May 1, to compete with Despair.com—a company that sells de-motivational posters and office products. The following events occurred during the first month of Down.com\'s operations.
| Assume Down.com was organized on May 1, to compete with Despair.com—a company that sells de-motivational posters and office products. The following events occurred during the first month of Down.com\'s operations. |
Solution
Answer
Assets
=
Liabilities
+
Stockholder\'s Equity
Cash
Equipment
Accounts Payable
ST Notes Payable
LT Notes Payable
Common Stock
Beg.
a.
32,000
32,000
b.
17,000
17,000
c.
d.
(2,000)
8,000
6,000
e.
(7,000)
14,000
7,000
End
40,000
22,000
=
7,000
6,000
17,000
32,000
Notes
Balance Sheet
Equity and Liability
$
Assets
$
Equity
NON- Current Assets
Common Stock
32,000
Fixed Assets
Equipment
22,000
Liability
Current Assets
Long Term Notes Payable
17,000
Cash
40,000
Short Term Notes Payable
6,000
Accounts Payable
7,000
Total
62,000
Total
62,000
| Assets | = | Liabilities | + | Stockholder\'s Equity | ||||
| Cash | Equipment | Accounts Payable | ST Notes Payable | LT Notes Payable | Common Stock | |||
| Beg. | ||||||||
| a. | 32,000 | 32,000 | ||||||
| b. | 17,000 | 17,000 | ||||||
| c. | ||||||||
| d. | (2,000) | 8,000 | 6,000 | |||||
| e. | (7,000) | 14,000 | 7,000 | |||||
| End | 40,000 | 22,000 | = | 7,000 | 6,000 | 17,000 | 32,000 |
