P1-47B Using the accounting equation for transaction analysis
Meg Clifford opened a public relations firm called Dance Fever on August 1, 2016. The following amounts summarize her business on August 31, 2016:
During September 2016, the business completed the following transactions:
a. Meg Clifford contributed $13,000 cash in exchange for common stock.
b. Performed service for a client and received cash of $1,200.
c. Paid off the beginning balance of accounts payable.
d. Purchased office supplies from OfficeMax on account, $1,000.
e. Collected cash from a customer on account, $1,500.
f. Cash dividends of $1,900 were paid to stockholders.
g. Consulted for a new band and billed the client for services rendered, $6,000.
h. Recorded the following business expenses for the month:
Paid office rent: $1,400.
Paid advertising: $350.
Analyze the effects of the transactions on the accounting equation of Dance Fever using the format presented above.

  • CreatedJune 12, 2015
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