Question

Using transactions a–j in P1-47A, answer the following questions:
In P1-47A, a. Buck began his business by depositing $25,000 into the business checking account. He received common stock in exchange.
b. The company provided services to customers for $30,000 cash.
c. The company paid travel expenses in the amount of $1,000 cash.
d. The company borrowed $5,000 from the bank for operating capital.
e. The company purchased $275 worth of office supplies (for future use) from Office Market for cash.
f. During the month, the company paid cash of $5,000 for operating expenses.
g. The company paid monthly rent on the retail space in the amount of $1,250.
h. The company paid the staff $4,200.
i. The company declared and paid a dividend of $1,000 to the owner, John Buck.
j. On the last day of the month, Buck’s purchased equipment costing $6,250 by signing a note payable with the bank.

Requirements
1. What is the cash balance at the end of Buck’s first month of business?
2. Does the company have any liabilities at the end of the first month of business? If so how much?
3. Which assets will appear on the balance sheet at the end of Buck’s first month of business?
4. Did the company generate a net income or a net loss for its first month of business? Howmuch?


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  • CreatedSeptember 01, 2014
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