Skip to main content

Assignment 1 - Ch 1

AnswerSaved

Help opens in a new windowSave & ExitSubmit

Item1

50points

ItemSkipped

Print

References

Item 1

Larry Power started a new business in the name of Power Electrical on October 1, 2023. During October, a number of activities occurred and the following totals resulted at October 31, 2023 (shown in accounting equation format):

Assets=Liabilities+EquityCash+Accounts Receivable+Office Supplies+Office Equip.+Electrical Equip.=Accounts Payable+Larry Power, Capital$32,000+$7,200+$2,100+$30,000+$15,000=$20,000+$66,300

During November, the following occurred:

Nov.1Rented office space and paid cash for the months rent of $7,400.3Purchased electrical equipment for $20,000 from an electrician who was going out of business, by using $11,000 in personal funds and agreeing to pay the balance in 30 days. Hint: Reminder to record the impact of the owner's deposit of cash in the business before recording the purchase of the equipment.5Purchased office supplies by paying $2,000 cash.6Completed electrical work and immediately collected $2,200 for doing the work.8Purchased $5,400 of office equipment on credit.15Completed electrical work on credit in the amount of $6,200.16Interviewed and hired a part-time electrician who will be paid $5,500 each month. He will beginwork in three weeks.18Purchased $1,200 of office supplies on credit.20Paid for the office equipment purchased on November 8.24Billed a client $4,900 for electrical work; the balance is due in 30 days.28Received $6,200 for the work completed on November 15.30Paid the office assistants salary of $4,600.30Paid the monthly utility bills of $3,800.30Power withdrew $1,600 from the business for personal use.

Required:

Complete the following table. Use additions and subtractions to show the effects of each November activity on the items in the equation. For each change in equity, select whether the change was caused by an investment, a revenue, an expense, or a withdrawal. Determine the final total for each item and verify that the equation is in balance. (Enter all amounts as positive values. If the transaction/event does not affect equity or does not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction' field.)

Prev

Question 1 of 5 Total1 of 5

Visit question mapNext