Concept explainers
Using the
Meg McIntyre opened a public relations firm called Pop Chart on August 1, 2018. The following amounts summanze her business on August 31,2018:
Learning Objective 4
Cash $12,650
During September 2018, the business completed the following transactions:
a. Meg McIntyre contributed $14,000 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, $1,200.
e. Collected cash from a customer on account, $2,300.
f. McIntyre withdrew $1,500.
g. Consulted for a new band and billed the client for services rendered, $4,000.
h. Recorded the following business expenses for the month:
Paid office rent: $900.
Paid advertising: $450.
Analyze the effects of the transactions on the accounting equation of Pop Chart using the format presented above.
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Horngren's Accounting (12th Edition)
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College