The following transactions apply to Molly’s Maid Service during April 2012:
a. Molly started the business by depositing $5,000 in a business checking account on April 1 in exchange for common stock.
b. The company provided services to clients and received $4,215 in cash.
c. The company borrowed $1,200 from the bank for the business by signing a note.
d. The company paid $1,125 of operating expenses.
e. The company purchased a new computer for $3,000 cash to use to keep track of its customers, starting next month.
f. The company declared and distributed $1,050 to the owner as dividends.

1. Enter the transactions into the accounting equation.
2. What are the total assets of the company at April 30, 2012?
3. Prepare a statement of cash flows for the month ended April 30, 2012.
4. What was net income for the month ended April 30, 2012?

  • CreatedSeptember 01, 2014
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