Question

Grant Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following:Cash $10,700Accounts Receivable 15,800Accounts Payable 600Notes Payable 3,500Common Stock 18,400Retained Earnings 4,000The following transactions occurred during the month of January:Jan:
1 Paid rent for January, $950.2 Received $8,800 payment on customers' accounts.3 Paid $750 on accounts payable.4 Received $1,700 for services performed for cash customers.5 Borrowed $5,000 from a bank and signed a note payable for that amount.6 Billed the city $6,200 for a feasibility study performed; billed various other credit customers, $1,900.7 Paid the salary of an assistant, $3,500.8 Received invoice for January utilities, $410.9 Paid $6,000 cash for employee salaries.10 Purchased a van (on January 31) for business use, $8,800.11 Paid $150 to bank as January interest on the outstanding note payable.Required:(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item.(Note: The beginning Van account balance is $0.)(b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets equal liabilities plus stockholders' equity as of January 31.

Answer 1

Answer:

attached table

Explanation:

for each transaction the acouting equation stand

As the sum ofthe three assets account is the same as the two liabiltiies account and the two equity account.

The revenues and expenses account were posted directly into retained earnings for the purpose of simplify the table.

The expese account if needed to expand the table would be:

(1) rent expense, (8)utilities expense, (11) interest expense and salaries expense (7) and (9)