Ming Chen started a business and had the following transactions in June.
a. Owner invested $60,000 cash in the company along with $15,000 of equipment in exchange for its common stock.
b. The company paid $1,500 cash for rent of office space for the month.
c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected $2,500 cash.
e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.
f. The company purchased additional equipment for $6,000 cash.
g. The company paid an assistant $3,000 cash as wages for the month.
h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $10,000 cash to settle the liability created in transaction c.
j. The company paid $1,000 cash in dividends to the owner (sole shareholder).
Required: Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation.
Assets = Liabilities + Equity
Cash + Accounts Accounts Common
Recolvable + Equipment = Payable + Stock - Dividends + Revenues + Expenses
a
b
Balance after a and b
c
Balance after c
d
Balance after d
e
Balance after e
f
Balance after f
g
Balance after g
h
Balance after h
i
Balance after i
j
Balance after j