Part A
Indicate the effect of each transaction during the month of October 2013 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.
a.Opened a business bank account for Jones, Inc., with an initial deposit of $ \$ 45,000 $ in exchange for capital stock.
b. Paid rent on the office building for the month $ \$ 2,000 $.
c.Received cash for fees earned of $ \$ 5,000 $.
d.Purchased equipment, $ \$ 7,000 $.
e.Borrowed $ \$ 20,000 $ by issuing \& note payable.
f.Paid salaries for the monith, $ \$ 1,000 $.
g.Received cash for fees earned of $ \$ 8,000 $.
h. Paid dividends, $ \$ 3,000 $.
i. Paid interest on the note, $ \$ 100 $. Part B
Using the information from Part A, prepare (1) an income statement, (2) a statement of retained earnings, (3) a balance sheet, and (4) a statement of cash flows for the month of October.

Question

Part A
Indicate the effect of each transaction during the month of October 2013 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.
 a.Opened a business bank account for Jones, Inc., with an initial deposit of $ \$ 45,000 $ in exchange for capital stock.
b.  Paid rent on the office building for the month $ \$ 2,000 $.
c.Received cash for fees earned of $ \$ 5,000 $.
d.Purchased equipment, $ \$ 7,000 $.
e.Borrowed $ \$ 20,000 $ by issuing \& note payable.
f.Paid salaries for the monith, $ \$ 1,000 $.
g.Received cash for fees earned of $ \$ 8,000 $.
h. Paid dividends, $ \$ 3,000 $.
i. Paid interest on the note, $ \$ 100 $.  Part B
Using the information from Part A, prepare (1) an income statement, (2) a statement of retained earnings, (3) a balance sheet, and (4) a statement of cash flows for the month of October.

Quizplus · Accepted Answer

The Answer of Part A
Indicate the effect of each transaction during the month of October 2013 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.
 a.Opened a business bank account for Jones, Inc., with an initial deposit of $ \$ 45,000 $ in exchange for capital stock.
b.  Paid rent on the office building for the month $ \$ 2,000 $.
c.Received cash for fees earned of $ \$ 5,000 $.
d.Purchased equipment, $ \$ 7,000 $.
e.Borrowed $ \$ 20,000 $ by issuing \& note payable.
f.Paid salaries for the monith, $ \$ 1,000 $.
g.Received cash for fees earned of $ \$ 8,000 $.
h. Paid dividends, $ \$ 3,000 $.
i. Paid interest on the note, $ \$ 100 $.  Part B
Using the information from Part A, prepare (1) an income statement, (2) a statement of retained earnings, (3) a balance sheet, and (4) a statement of cash flows for the month of October.

Part a Indicate the Effect of Each Transaction During the Month

Part a
Indicate the Effect of Each Transaction During the Month