Mary May started her own hair salon on February 1, 2023. The following transactions occurred during the
Question:
Mary May started her own hair salon on February 1, 2023. The following transactions occurred during the month of February
Feb 1 Deposited $30,000 of cash from own savings in a new business bank account.
2 Purchased a computer for $5,000 cash.
3 Paid $2 000 for rent for the month of February.
5 Performed $2,000 of services to hotel guests and issued a 30 day invoice to the hotel.
9 Paid $200 from the business bank account when she took her sister to dinner.
10 Purchased equipment for her hair salon and paid cash of $2,000.
12 Purchased supplies for $500 on account from a supplier.
15 Received a cash payment of $500 for services performed on February 5.
17 Received an invoice for $300 for an Internet connection fee.
20 Received a cash payment of $3,000 for services performed.
23 Borrowed $5 000 from the bank which will be paid back over a period of 3 years. The bank paid the amount of $5 000 into the business bank account.
25 Paid $280 for Electricity.
26 Paid $500 to the bank as a down-payment on the loan.
27 Paid for the supplies purchased on account on Feb 12.
28 Paid wages of $850.
Required: Show the effects of the transactions on the accounting equation.
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman