Thursday, 12 February 2015

Isabel Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.

Isabel Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
  
a. I. Lopez invests $68,000 cash and office equipment valued at $33,000 in the company.
b.
The company purchased a $304,000 building to use as an office. Biz paid $42,000 in cash and signed a note payable promising to pay the $262,000 balance over the next ten years.
c. The company purchased office equipment for $5,900 cash.
d. The company purchased $3,200 of office supplies and $1,200 of office equipment on credit.
e. The company paid a local newspaper $980 cash for printing an announcement of the office’s opening.
f. The company completed a financial plan for a client and billed that client $5,000 for the service.
g. The company designed a financial plan for another client and immediately collected an $8,300 cash fee.
h. Lopez withdrew $1,300 cash from the company for personal use.
i. The company received $4,000 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $600 cash on the equipment purchased in transaction d.
k. The company paid $2,100 cash for the office secretary’s wages for this period.
  
Required:
2.
Enter the amount of each transaction on individual items of the accounting equation.

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