assignment - 2.20 Transaction No.1 Starting the Operations Hikes Consultants started its operations on January 31 when the owner made $20 000 cash

assignment - 2.20 Transaction No.1 Starting the Operations...

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2.20 Transaction No.1: Starting the Operations Hike’s Consultants started its operations on January 31 when the owner made $20 000 cash contribution. This accounting event acts to increase both as assets(Cash) and equity(Contributed Capital). Dr: Cash Cr: Contributed Capital 2.21 Transaction No.2: Purchasing Office Supplies On May 15, Hike’s Consultants purchased $800 of office suppliers from a local supply company on account(i.e., agreed to pay for them on l later date). Dr: Supplies Cr: Accounts Payable 2.22 Transaction No.3: Providing Service on Account On May 20, 20X5, the company provided services on account(i.e., it will collect cash later, even though it had already provided services) to Mercy Food Store. Mr. Mercy’s business was $3 200. Dr: Accounts Receivable Cr:Consulting Revenue 2.23 Transaction No.4: Paying Cash for Operating Expenses On April, 5 the company paid $1 200 cash for operating expenses. Dr: Cash Cr:Operating Expenses 2.24 Transaction No.5: Borrowing Money from Bank

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