Pinehurst Company was formed in Year 1 and experienced the following accounting events during the year:
Issued common stock for $15,000 cash.Earned cash revenue of $28,000.Paid cash expenses of $20,500. These were the only events that affected the company during the year.
Required: Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading. Enter 0 for items not affected.Prepare an income statement for Year 1 and a balance sheet as of December 31, Year 1.

Question

Quizplus · Accepted Answer

The Answer of Pinehurst Company was formed in Year 1 and experienced the following accounting events during the year:
Issued common stock for $15,000 cash.Earned cash revenue of $28,000.Paid cash expenses of $20,500. These were the only events that affected the company during the year.
Required: Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading. Enter 0 for items not affected.Prepare an income statement for Year 1 and a balance sheet as of December 31, Year 1.

Pinehurst Company Was Formed in Year 1 and Experienced the Following