Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.

1. Owner invested $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common stock.
2. The company paid $2,500 cash for rent of office space for the month.
3. The company purchased $17,000 of additional equipment on credit (payment due within 30 days).
4. The company completed work for a client and immediately collected the $2,500 cash earned.
5. The company completed work for a client and sent a bill for $7,300 to be received within 30 days.
6. The company purchased additional equipment for $5,900 cash.
7. The company paid an assistant $3,500 cash as wages for the month.
8. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e.
9. The company paid $17,000 cash to settle the liability created in transaction c.
10. The company paid $1,100 cash in dividends to the owner (sole shareholder).

Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions. a. Owner Invested $59,000 cash in the company along with equipment that had a $16,000 market value in exchange for its common stock. b. The company paid $2,500 cash for rent of office space for the month. C. The company purchased $17,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and Immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $7,300 to be received within 30 days. f. The company purchased additional equipment for $5,900 cash. g. The company paid an assistant $3,500 cash as wages for the month. h. The company collected $4,600 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $17,000 cash to settle the liability created in transaction c. J. The company paid $1,100 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each transaction on Individual Items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets = Liabilities Equity Cash Accounts Receivable + Equipment = Accounts Payable Common Stock Dividends + Revenues - Expenses 0 + 0 - 0 + 0 + Bal 0 + 0 - 0 + $ 0 - 5 0 + $ 0 - 0