11. Molly Vasquez started a consulting business, Stern Consulting, on January 1, Year 1 by issuing...

Transcribed Image Text:

11. Molly Vasquez started a consulting business, Stern Consulting, on January 1, Year 1 by issuing $9,000 of co mmon stock. In addition, the following events occurred in Year 1. Provided services on account, $27,500. Paid cash for $13,500 in operating expenses. Collected $11,000 of the revenue that was previously recorded on account. Paid a cash dividend of $5,000 to the stockholders. Required: a) Show the effects of the above transactions on the accounting equation. Precede the amount with a minus sign if the transaction reduces that section of the equation. Enter 0 for items not affected. Total Assets Cash-13, 500 Liabilities. AC 27,500 Equity Revenues } Expenses -13,500 f 11. Molly Vasquez started a consulting business, Stern Consulting, on January 1, Year 1 by issuing $9,000 of co mmon stock. In addition, the following events occurred in Year 1. Provided services on account, $27,500. Paid cash for $13,500 in operating expenses. Collected $11,000 of the revenue that was previously recorded on account. Paid a cash dividend of $5,000 to the stockholders. Required: a) Show the effects of the above transactions on the accounting equation. Precede the amount with a minus sign if the transaction reduces that section of the equation. Enter 0 for items not affected. Total Assets Cash-13, 500 Liabilities. AC 27,500 Equity Revenues } Expenses -13,500 f