Sanyu Sony started a new business and completed these transactions during December. Required 1. Create the following

Question:

Sanyu Sony started a new business and completed these transactions during December.

Dec. 1 2 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the

3 LO 5 6 8 15 18 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to

20 24 28 29 30 31 The company paid $2,530 cash for the office equipment purchased on December 8. The company

Required
1. Create the following table similar to Exhibit 1.9. Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the accounting equation.
Show new balances after each transaction.

Assets Date Cash+ Accounts + Supplies + Office + Electrical Receivable Equipment Equipment = Liabilities +

Data from Exhibit 1.9 (1) $30,000 (2) - 2,500 Bal. 27,500 (3) -26,000 Bal. 1,500 (4) Bal. 1,500 (5) + 4,200 Bal. (6) Bal. Cash (7) 2. Prepare the income statement and the statement of retained earnings for the current month, and the balance sheet as of the end of the month.

3. Prepare the statement of cash flows for the current month.

4. Assume that the owner investment transaction on December 1 was $49,000 cash instead of $65,000 and that Sony Electric obtained another $16,000 in cash by borrowing it from a bank.
Compute the dollar effect of this change on the month-end amounts for

(a) Total assets

(b) Total liabilities

(c) Total equity.

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