Exercise_1_Question - The business paid its rent monthly...

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Lecturer: Huynh Thi Ngoc Anh ̀ ̣ ̣ Exercise 1 Activities The accounting equation for a new company will look like this: Assets = Liabilities + Owner’s Capital + Retained Earnings + Revenues – Expenses – Earnings distribution $0 $0 $0 $0 $0 $0 $0 The following transactions occurred during January 2010: Jan 1 3 10 15 30 31 The owner contributed $5,000 in cash to begin operations. The business purchased a computer, on credit, for $2,500. The business received an invoice of $50 for water supply. The business sold goods for cash of $1,200. The business paid its rent monthly rent of $950 in cash.
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Unformatted text preview: The business paid its rent monthly rent of $950 in cash. The business’ owner got an Earnings distribution of $50 to pay for home phone service charge. Requirement a. Show the effects of the above transactions on the company’s accounting equation. b. Prepare the financial statement for the month ended Jan 31. Accounting Principles 1 Exercise 1...
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