1. Smith Contractors, Inc. began operations on October 1, 2020. The first three business transactions for the company have already been recorded as reflected in the transactions below and on the financial statement tabular analysis. 
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3. Required
4. For transactions 4-16, record the effect on the accounting equation and then on the tabular analysis. 
5. 
   
6. You will then write Financial Statements 
7. 1. Smith Contractors, Inc. Income Statement For the Month Ended October 31, 2020 
8. 2. Smith Contractors, Inc. Statement of Retained Earnings For the Month Ended October 31, 2020 and 
9. 3. Classified Balance Sheet.     

Transcribed Image Text:

1. Received $50,000 cash in exchange for common stock Liabilities + Assets = Cash +$50,000 ACCT NAMES: Amount +/- 2. Borrowed $20,000 from First National Bank to finance operations, signing a 5 year, 6% N/P Stockholders' Equity Assets= Liabilities Note Payable +$20,000 ACCT NAMES: Amount +/- 3. Purchased equipment for $15,000 cash Assets ACCT NAMES: Amount +/- ACCT NAMES: Amount +/- 4. Purchased $4,000 of supplies on account Assets ACCT NAMES: Amount +/- Cash +$20,000 ACCT NAMES: Amount +/- Cash Equipment -$15,000 +$15,000 ACCT NAMES: Amount +/- + Liabilities + 6. Purchased on October 1 a 6 month insurance policy for $600 Assets= Liabilities + ACCT NAMES: Amount +/- Liabilities + 5. Received a $2,000 cash advance from a customer for services not yet performed Assets = Liabilities + Stockholders' Equity Stockholders' Equity Common Stock +$50,000 8. Paid wages of $3,500 to employees for the month of October Assets = Liabilities + Stockholders' Equity Stockholders' Equity 7. Provided services to customers during October and received $45,000 cash Assets Liabilities + Stockholders' Equity Stockholders' Equity Stockholders' Equity 1. Received $50,000 cash in exchange for common stock Liabilities + Assets = Cash +$50,000 ACCT NAMES: Amount +/- 2. Borrowed $20,000 from First National Bank to finance operations, signing a 5 year, 6% N/P Stockholders' Equity Assets= Liabilities Note Payable +$20,000 ACCT NAMES: Amount +/- 3. Purchased equipment for $15,000 cash Assets ACCT NAMES: Amount +/- ACCT NAMES: Amount +/- 4. Purchased $4,000 of supplies on account Assets ACCT NAMES: Amount +/- Cash +$20,000 ACCT NAMES: Amount +/- Cash Equipment -$15,000 +$15,000 ACCT NAMES: Amount +/- + Liabilities + 6. Purchased on October 1 a 6 month insurance policy for $600 Assets= Liabilities + ACCT NAMES: Amount +/- Liabilities + 5. Received a $2,000 cash advance from a customer for services not yet performed Assets = Liabilities + Stockholders' Equity Stockholders' Equity Common Stock +$50,000 8. Paid wages of $3,500 to employees for the month of October Assets = Liabilities + Stockholders' Equity Stockholders' Equity 7. Provided services to customers during October and received $45,000 cash Assets Liabilities + Stockholders' Equity Stockholders' Equity Stockholders' Equity

Answer rating: 100% (QA)

It appears that two images have been provided showing a number of business transactions which need to be recorded and adjusted in the companys accounts To address the Required section of your outline ... View the full answer