Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first...

 

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Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $63,000 cash and equipment valued at $35,000 in the company in exchange for its common stock. b. The company purchased a building for $50,000 cash. c. The company purchased equipment for $5,200 cash. d. The company purchased $3,700 of supplies and $1,000 of equipment on credit. e. The company paid $920 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,300 for the service. g. The company designed a financial plan for another client and immediately collected a $8,900 cash fee. h. The company paid $1,500 cash in dividends to the owner (sole shareholder). i. The company received $3,300 cash as partial payment from the client described in transaction f j. The company made a partial payment of $500 cash on the equipment purchased in transaction d. k. The company paid $2,100 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $63,000 cash and equipment valued at $35,000 in the company in exchange for its common stock. b. The company purchased a building for $50,000 cash. c. The company purchased equipment for $5,200 cash. d. The company purchased $3,700 of supplies and $1,000 of equipment on credit. e. The company paid $920 cash for advertising expenses. f. The company completed a financial plan for a client and billed that client $4,300 for the service. g. The company designed a financial plan for another client and immediately collected a $8,900 cash fee. h. The company paid $1,500 cash in dividends to the owner (sole shareholder). i. The company received $3,300 cash as partial payment from the client described in transaction f j. The company made a partial payment of $500 cash on the equipment purchased in transaction d. k. The company paid $2,100 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income.

Answer rating: 100% (QA)

1 The accounting equation is Assets Liabilities Equity Lets analyze each transaction and identify the impact on the individual components of the accou... View the full answer