Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred....
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Accounting
Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. (a) Invested cash in business, $18,000. (b) Bought office supplies for $4,600: $2,000 in cash and $2,600 on account. (c) Paid one-year insurance premium, $1,200. (d) Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account. (e) Paid cash on account to the company that supplied the office supplies in transaction (b), $2,300. (f) Paid office rent for the month, $750. (g) Withdrew cash for personal use, $100. REQUIRED Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (g), report the totals for each element. Demonstrate that the accounting equation has remained in balance.
P 2-10A (LO5) INCOME STATEMENT Based on Problem 2-9A, prepare an income statement for
Jay Pembroke for the month of April 20--.
P 2-11A (LO5) STATEMENT OF OWNERS EQUITY Based on Problem 2-9A, prepare a statement
of owners equity for Jay Pembroke for the month of April 20--.
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