Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $65,000 cash and office equipment valued at $36,000 in the company.
b. The company purchased an office suite for $47,000 cash.
c. The company purchased office equipment for $6,000 cash.
d. The company purchased $3,100 of office supplies and $1,400 of office equipment on credit.
e. The company paid a local newspaper $800 cash for printing an announcement of the office’s opening.
f. The company completed a financial plan for a client and billed that client $4,500 for the service.
g. The company designed a financial plan for another client and immediately collected a $8,500 cash fee.
h. Lita Lopez withdrew $1,400 cash from the company for personal use.
i. The company received $3,900 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $900 cash on the equipment purchased in transaction d.
k. The company paid $2,500 cash for the office secretary’s wages for this period.
Required:
Create a table like the one in Exhibit 1.9, using the following headings for the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment; Building; Accounts Payable; Notes Payable; L. Lopez, Capital; L. Lopez, Withdrawals; Revenues; and Expenses.