Sanyu Sony started a new business and completed these transactions during December. Required 1. Create the following
Question:
Sanyu Sony started a new business and completed these transactions during December.
Required
1. Create the following table similar to Exhibit 1.9. Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the accounting equation.
Show new balances after each transaction.
Data from Exhibit 1.92. Prepare the income statement and the statement of retained earnings for the current month, and the balance sheet as of the end of the month.
3. Prepare the statement of cash flows for the current month.
4. Assume that the owner investment transaction on December 1 was $49,000 cash instead of $65,000 and that Sony Electric obtained another $16,000 in cash by borrowing it from a bank.
Compute the dollar effect of this change on the month-end amounts for
(a) Total assets
(b) Total liabilities
(c) Total equity.
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