The following events occurred during the month of September 2016 for the business of Elizas Webdesign Service:
Question:
The following events occurred during the month of September 2016 for the business of Eliza’s Webdesign Service:
Sept. | 1 2 4 6 7 8 | Eliza deposited $40000 cash into the business bank account. A computer, telephone system and printer were purchased at a cost of $10000 cash. A part-time receptionist was hired to commence in October 2016. Web design services were provided to clients for $12000. The clients were invoiced but have not as yet paid. Advertising for the week amount to $1000 cash. A customer paid $3000 in advance for web design services scheduled for October. |
Required:
A. Determine the effects of business transactions on a balance sheet by preparing a new balance sheet for Eliza’s Webdesign Service after each transaction has occurred.
B. Discuss the expected tasks of Eliza as the manager of Webdesign Service.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
A Sept 1 Capital investment by owner 40 000 ELIZAS WEBDESIGN SERVICE Balance Sheet as at 1 September 2016 ASSETS Cash on hand 40000 TOTAL ASSETS 40000 EQUITY Eliza Capital 40000 TOTAL EQUITY 40000 Sep...View the full answer
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
