Cindy Braun created a corporation providing legal services, Cindy Braun Inc., on
ID: 2425644 • Letter: C
Question
Cindy Braun created a corporation providing legal services, Cindy Braun Inc., on July 1, 2014. On July 31 the balance sheet showed: Cash $4,000; Accounts Receivable $5,680; Supplies $950; Equipment $8,180; Accounts Payable $7,380; Common Stock $9,380; and Retained Earnings $2,050. During August the following transactions occurred.
Aug. 1 Collected $1,130 of accounts receivable due from customers. 4 9 15 19 23 26 31 Paid $2,680 cash for accounts payable due. Performed services worth $5,700, of which $3,640 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,100, paying $450 in cash and the balance on account. Paid salaries $1,350, rent for August $760, and advertising expenses $380. Paid a cash dividend of $660 Borrowed $5,960 from Standard Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $440.Explanation / Answer
Cindy Braun inc.
Assets
=
Liabilities
+
Stockholders equity
Cash
Account receivable
Supplies
Equipment
=
notes payable
+
Accounts payable
+
Common stock
+
Retained earnings
+
Revenue
+
Expenses
+
dividend
July 31
4000
+
5680
+
950
+
8180
=
+
7380
+
9380
+
2050
+
+
+
Aug1
1130
+
(1130)
+
+
=
+
+
+
+
+
+
Aug4
(2680)
+
+
+
=
+
(2680)
+
+
+
+
+
Aug9
3640
+
2060
+
+
=
+
+
+
+
5700
+
+
Aug 15
(450)
+
+
+
4100
=
+
3650
+
+
+
+
+
Aug19
(2490)
+
+
+
=
+
+
+
+
+
(2490)
+
Aug23
(660)
+
+
+
=
+
+
+
+
+
+
(660)
Aug26
5960
+
+
+
=
5960
+
+
+
+
+
+
Aug 31
(440)
+
+
+
=
+
+
+
+
+
(440)
+
8010
6610
950
12280
5960
8350
9380
2050
5700
-2930
-660
Cindy Braun inc.
Assets
=
Liabilities
+
Stockholders equity
Cash
Account receivable
Supplies
Equipment
=
notes payable
+
Accounts payable
+
Common stock
+
Retained earnings
+
Revenue
+
Expenses
+
dividend
July 31
4000
+
5680
+
950
+
8180
=
+
7380
+
9380
+
2050
+
+
+
Aug1
1130
+
(1130)
+
+
=
+
+
+
+
+
+
Aug4
(2680)
+
+
+
=
+
(2680)
+
+
+
+
+
Aug9
3640
+
2060
+
+
=
+
+
+
+
5700
+
+
Aug 15
(450)
+
+
+
4100
=
+
3650
+
+
+
+
+
Aug19
(2490)
+
+
+
=
+
+
+
+
+
(2490)
+
Aug23
(660)
+
+
+
=
+
+
+
+
+
+
(660)
Aug26
5960
+
+
+
=
5960
+
+
+
+
+
+
Aug 31
(440)
+
+
+
=
+
+
+
+
+
(440)
+
8010
6610
950
12280
5960
8350
9380
2050
5700
-2930
-660