P1-41A (similar to More Info Cosmo Timmins started a now business, Timmins Gymna

Question

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

Explanation / Answer

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

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