Analyze the effects of the transaction on the accounting equation of Tinnemeyer Gymnastics.

Analyze the events chronologically, one transaction at a time. Beginning with the transaction on the 2nd, calculate the balance in each account after analyzing the effect of the transaction on the accounting equation. Enter each transaction from the 28th on separate lines an in the same order as presented in the problem statement. (Complete only the necessary answer boxes for your transaction lines.) Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; A/R = Accounts Receivable; Adv. = Advertising: Cap = Tinnemeyer capital: Exp. = Expense: Liab. = Liabilities off. sup = Office Supplies, sal = salaries: Serv. Rev = Service

Revenue Until = Utility: withdr. = Tinnemeyer, Withdrawals. )

Dec.

1. Camden contributed $22,000 cash in exchange for capital.

2. Received $3,000 cash from customers for services performed.

5. Paid $300 cash for office supplies.

9. Performed services for a customer and billed the customer for services rendered, $2,000.

10. Received $250 bill for utilities due in two weeks.

15. Paid for advertising in the local paper, $500.

20. Paid utility bill received on Dec. 10.

25. Collected cash from customer billed on Dec 9.

28. Paid rent for the month, $3,000.

28. Paid $1,550 to assistant for wages.

30. Received $2,200 cash from customers for service performed.

31. Camden withdrew $4,500 cash from the business.

Transcribed Image Text:

12/1 Cash Assets AR . Off. Sup Liab -A/P Cap Withdr + Serv Rev Equity - Rent Exp. US Sal. Adv Exp. Exp. Exp 12/1 Cash Assets AR . Off. Sup Liab -A/P Cap Withdr + Serv Rev Equity - Rent Exp. US Sal. Adv Exp. Exp. Exp

Answer rating: 100% (QA)

Assets Liab Equity Date Cash AR Off Sup AP Cap Withdr Ser... View the full answer