Assessment
1) Beckowsik Company began business in June and completed the following transactions:
A) Received $50,000 cash and issued common stock to the stockholders.
B) Purchased supplies for $5,000 on account.
C) Received and paid utilities bill of $2,000 for the month.
D) Performed services for a customer and billed the customer $6,000.
E) Received $3,000 from the customer on account.
F) Paid for the supplies purchased on account.
G) Purchased equipment for $10,000 on account.
H) Declared and paid dividends of $2,200.
Required:
1. Record the effects of the above transactions on the accounting equation.
2. Prove the accounting equation using the final balances in the accounts.
2) Indicate whether the account is an asset (A), liability (L), stockholders' equity (SE), revenue (R) or expense (E) account. Also indicate if the account would appear on the Balance Sheet (BS), Income Statement (IS), Statement of Cash Flows (CF) or the Statement of Retained Earnings (SRE).
|
|
ACCOUNT
|
TYPE OF ACCOUNT
|
FINANCIAL STATEMENT
|
|
1.
|
Equipment
|
|
|
|
2.
|
Common Stock
|
|
|
|
3.
|
Accounts Payable
|
|
|
|
4.
|
Service Revenue
|
|
|
|
5.
|
Salary Expense
|
|
|
|
6.
|
Inventory
|
|
|
|
7.
|
Accounts Receivable
|
|
|
|
8.
|
Retained Earnings
|
|
|
|
9.
|
Notes Payable
|
|
|
|
10.
|
Prepaid Insurance
|
|
|
|
11.
|
Dividends
|
|
|
|
12.
|
Cash
|
|
|