K
Meg Clifford opened a public relations firm called
Music Maze on August 1, 2016. The following amounts
summarize her business on August 31, 2016:
(Click the icon to view the amounts.)
During September 2016, the business completed
the following transactions:
1 (Click the icon to view the transactions.)
Analyze the effects of the transactions on the
accounting equation of Music Maze.
Analyze the events chronologically, one transaction at a time. Beginning with transaction a., calculate the balance in
each account after analyzing the effect of the transaction on the accounting equation. (Complete only the necessary
answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to
the \"Bal.\" line, including zero balance accounts, entering a \"0\" for any zero balances. Enter a decrease in an account
with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; A/R = Accounts Receivable; Adv. =
Advertising; Cap. = Clifford, Capital; Exp. = Expense; Liab = Liabilities; Rev. = Revenue; Sup. = Supplies; Withdr. =
Clifford, Withdrawals.)
ASSETS
LIAB.
EQUITY
Cash + A/R + Office + Land = A/P + Cap. - Withdr. + Service - Rent - Adv.
Sup.
Rev. Exp. Exp.
Bal. 2,700 3,400 0 18,000 7,000 13,700 0 3,400 0 0
a.
Bal.
More info
a. Meg Clifford contributed $9,000 cash in exchange for capital.
b. Performed service for a client and received cash of $1,600.
c. Paid off the beginning balance of accounts payable.
d. Purchased office supplies from OfficeMax on account, $300.
e. Collected cash from a customer on account, $2,300.
f. Meg withdrew $1,300.
g. Consulted for a new band and billed the client for services rendered, $2,700.
h. Recorded the following business expenses for the month:
1. Paid office rent: $800.
2. Paid advertising: $800.
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