On April 1, Sheridan Travel Agency Inc. began operations. The following transactions were completed during the...

 

 

Transcribed Image Text:

On April 1, Sheridan Travel Agency Inc. began operations. The following transactions were completed during the month: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Issued common shares for $6,000 cash. Obtained a bank loan for $18,000. Paid $13,000 cash to buy equipment. Paid $1,700 cash for April office rent. Paid $1,500 for supplies. Purchased $500 of newspaper advertising on account. Earned $19,000 for services performed: cash of $2,000 was received from customers, and the balance was billed to customers on account. Declared and paid $400 of dividends to shareholders. Paid the utility bill for the month, $1,500. Paid the amount due for newspaper advertising in transaction 6. Paid $100 of interest on the bank loan obtained in transaction 2. Paid employees' salaries, $6,300. Received $10,000 cash from customers billed in transaction 7. Paid income tax, $1,200. Prepare an equation analysis of the effect of above transactions on the accounting equations. On April 1, Sheridan Travel Agency Inc. began operations. The following transactions were completed during the month: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Issued common shares for $6,000 cash. Obtained a bank loan for $18,000. Paid $13,000 cash to buy equipment. Paid $1,700 cash for April office rent. Paid $1,500 for supplies. Purchased $500 of newspaper advertising on account. Earned $19,000 for services performed: cash of $2,000 was received from customers, and the balance was billed to customers on account. Declared and paid $400 of dividends to shareholders. Paid the utility bill for the month, $1,500. Paid the amount due for newspaper advertising in transaction 6. Paid $100 of interest on the bank loan obtained in transaction 2. Paid employees' salaries, $6,300. Received $10,000 cash from customers billed in transaction 7. Paid income tax, $1,200. Prepare an equation analysis of the effect of above transactions on the accounting equations.

Answer rating: 100% (QA)

summary of Sheridan Travel Agency Incs transactions for the month of April Issued common shares for ... View the full answer