Missy Crane opened a public relations firm called Goth on August 1, 2018 The Dur
ID: 2605602 • Letter: M
Question
Missy Crane opened a public relations firm called Goth on August 1, 2018 The During Septembe following amounts summarize her business on August 31, 2018 2018, the business completed the following transactions 1 (Click the icon to view the transactions.) EE (click the icon to view the amounts) Analyze the effects of the transactions on the accounting equation of Goth. 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 onily 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, entening a "O" for any zero balances Enter a decrease in an account with a minus sign or parentheses. Abbreviations used AP Accounts Payable /R -Accounts Receivable: Adv Advertising, Cap -Crane, Capital; Exp Expense, Liab Liabilities Rev. Revenue, Sup = Supplies withdr = Crane, withdrawals ) ASSETS LIAB.+ EQUITY Cash + A/R + Office + Land = A/P + Cap Service Rent Adv Sup RevEXp 3,400 Exp Bal 2300 3.400 12.000 = 8,0006 300 0 BalExplanation / Answer
Assets
=
Liabilities
+
Equity
cash
+
A/r
+
Office supplies
+
land
=
A/p
+
cap
-
withdrawls
+
Service revenue
-
Rent expense
-
Adve expense
bal
2300
3400
0
12000
8000
6300
0
3400
0
0
a
16000
16000
bal
18300
3400
0
12000
8000
22300
0
3400
0
0
b
1600
1600
bal
19900
3400
0
12000
8000
22300
0
5000
0
0
c
(8000)
(8000)
bal
11900
3400
0
12000
0
22300
0
5000
0
0
d
600
600
bal
11900
3400
600
12000
600
22300
0
5000
0
0
e
2100
(2100)
bal
14000
1300
0
12000
0
22300
0
5000
0
0
f
(1100)
1100
bal
12900
1300
0
12000
0
22300
1100
5000
0
0
g
5000
5000
bal
12900
6300
0
12000
0
22300
1100
10000
0
0
h.1
(1100)
1100
h.2
(450)
450
bal
11350
6300
0
12000
0
22300
1100
10000
1100
450
Journal entries
Capital Cr. 16000
Service revenue Cr. 1600
Cash Cr. 8000
Accounts payable Cr. 600
A/R Cr. 2100
Cash Cr. 1100
Service revenue Cr. 5000
Cash Cr. 1100
2. Advertising expense Dr. 450
Cash Cr. 450
Assets
=
Liabilities
+
Equity
cash
+
A/r
+
Office supplies
+
land
=
A/p
+
cap
-
withdrawls
+
Service revenue
-
Rent expense
-
Adve expense
bal
2300
3400
0
12000
8000
6300
0
3400
0
0
a
16000
16000
bal
18300
3400
0
12000
8000
22300
0
3400
0
0
b
1600
1600
bal
19900
3400
0
12000
8000
22300
0
5000
0
0
c
(8000)
(8000)
bal
11900
3400
0
12000
0
22300
0
5000
0
0
d
600
600
bal
11900
3400
600
12000
600
22300
0
5000
0
0
e
2100
(2100)
bal
14000
1300
0
12000
0
22300
0
5000
0
0
f
(1100)
1100
bal
12900
1300
0
12000
0
22300
1100
5000
0
0
g
5000
5000
bal
12900
6300
0
12000
0
22300
1100
10000
0
0
h.1
(1100)
1100
h.2
(450)
450
bal
11350
6300
0
12000
0
22300
1100
10000
1100
450