Strand corp started an accounting - exam consulting business for wayward accounting students on january 1, 2013 and for the year had the following transactions:
1. started the company with a $125,000 investment in return for stock
2. sold consulting services for $ 350,000 50% on account,the remainder for cash
3. purchased office supplies of $10,000 on account
4. paid wages, $ 150,000
5. sold additional consulting services for $200,000,50% on account, the remainder for cash
6. purchased a computer system for $15,000 by borrowing from the bank ( current value=$20,000)
7. collected $150,000 from customers previously sold to on account
8. purchased office furniture for $50,000 with 10% down and borrowing remainder from bank
9. paid the bank 50% of what owed them
10.paid the following a. utilities -$75,000
b, rent - $115,000
c, insurance-$45,000
d, adverstising of -$50,000
11. paid dividends of $ 15,000
12. additional investment in the company was made of $100,000
REQUID.
1. using the balance sheet equation (A=L+E). accounting for the transactions above
2. calculate ending account balances to prove that A =L+E
3. prepare an income statement in proper form
4. prepare a balance sheet in proper form