Donna Au started an interior design company called Interiors by Donna, Inc. on September 1, 2013. The following amounts summarize the financial position of her business on September 14, 2013, after the first two weeks of operations:
During the remainder of September, the following events occurred:
a. Au received $10,000 as a gift and used it to buy 5,000 shares in the business.
b. Paid off the beginning balance of Accounts Payable.
c. Performed services for a client and received cash of $2,500.
d. Collected cash from a customer on account, $850.
e. Purchased supplies on account, $600.
f. Consulted on the interior design of a major office building and billed the client for services performed, $5,000.
g. Sold an additional 1,000 shares for $2,500 in the business.
h. Paid salaries of $2,400.
i. Sold supplies at cost to another interior designer for $110 cash.
j. Paid dividends of $1,500 to Au.
1. Enter the remaining transactions for the month of September into the expanded accounting equation, calculating new balances after each transaction.
2. Prepare the income statement of Interiors by Donna, Inc. for the month ended September 30, 2013.
3. Prepare the statement of changes in equity of Interiors by Donna, Inc. for the month ended September 30, 2013.
4. Prepare the statement of financial position of Interiors by Donna, Inc. at September 30, 2013.

  • CreatedJuly 08, 2015
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