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BB Answers to in class example problem chapter 4

BB Answers to in class example problem chapter 4 -...

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Example Problem 1. J. Scott invests $20,000 cash to start the business. 1. Purchased supplies paying $1,000 cash. 1. Purchased equipment for $15,000 cash 1. Purchased Supplies of $200 and Equipment of $1,000 on account. 1. Borrowed $4,000 from 1st American Bank. 1. Provided consulting services receiving $3,000 cash. 1. Paid salaries of $800 to employees. 1. A dividend of $500 is paid to the owner.
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Description Debit Credit Cash 20,000 Owner Capital 20,000 Supplies 1,000 Cash 1,000 Equipment 15,000 Cash 15,000 Supplies 200 Equipment 1,000 Accounts Payable 1,200 Cash 4,000 Notes Payable 4,000 Cash 3,000 Revenue 3,000 Salaries Expense 800 Cash 800 Dividends 500 Cash 500
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Cash 20,000 1,000 4,000 15,000 3,000 800 500 9,700 Account Payable 1,200 1,200 Supplies 1,000 200 1,200 Note Payable 4,000 4,000 Equipment
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Unformatted text preview: Equipment 15,000 1,000 16,000 Example Problem Dividends 500 500 Revenue 3,000 3,000 Salaries Expense 800 800 Paid in Capital 20,000 20,000 Example Problem Example Problem Revenue $3,000 Less Expenses Salaries 800 Net Income $2,200 J. Scott Company Income Statement Assets Cash $9,700 Supplies 1,200 Equipment 16,000 Total Assets $26,900 Liabilities Accounts payable $1,200 Notes Payable 4,000 Owners' Equity Paid-in capital 20,000 Retained earnings 1,700 Total Liab. and Equity $26,900 J. Scott Company Balance Sheet Paid-in capital $20,000 Retained earnings, Beg. $0 Net income 2,200 Dividends 500 Retained earnings, End $1,700 J. Scott Company Statement of Owners' Equity...
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