The Ruiz Company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. During the year, it paid $40,000 cash for land, $10,000 for salaries, and $6,000 in cash dividends to the owners.
Required:
1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements)
2) Prepare an income statement and a balance sheet for the 2013 accounting period.

Question

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The Answer of The Ruiz Company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. During the year, it paid $40,000 cash for land, $10,000 for salaries, and $6,000 in cash dividends to the owners.
Required:
1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements)
2) Prepare an income statement and a balance sheet for the 2013 accounting period.

The Ruiz Company Began Operations on January 1, 2013 and on That