On June 1 of the current year WIlson Wood opened Woody's Web service. The corporation had the following transactions.
a. Opened a business checking account and made a deposit, $4000. In exchange, Wilson was issued 200 shares of $20 par value stock.
b. Paid rent for June for office space and computer equipment, $2,000.
c. Purchased office supplies (stamps,pens, etc.) on account, $680.
d. Received cash for services rendered, $3500.
e. Paid creditor for office supplies purchased on account, $500.
f. Purchased office supplies for cash, $190.
g. Billed clients for consultations performed on account, $4,400.
h. Paid the monthly internet service bill of $180.
i. Paid the secretary's salary of $2,400.
j. Declared and paid dividents of $500.
k. Received cash from clients previously billed, $1,500.
l. Returned $150 of office supplies purchased in transaction f above. Received a full refund.
The acct headings are Cash, Account Receivables, Office Supplies = Accounts Payables + Common Stock+Retained Earnings
You are required to record these transactions using a spreadsheet format. The first transaction increases the cash account by $8000 and also increases the common stock account by $8000. When you are finished the total assets equal total liabilities and equity.
2. It has been determined that the cost of the supplies used durin the month was $300. Ending cash balance should be $2020.00.
Wilson initially invested $8000 in the business. Could he have invested less? HOw little could he have invested initially and never have his cash balance fo below zero. To help answer this question, moved to column K and analyze the information provided. Then enter differnet amounts in cell B9 to help calculate an answer. When you have determined an answer, print the worksheet again. Explain how you derived your answer.