90.2K

Verified Solution

Link Copied!

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $64,000 cash and equipment valued at $31,000 in the company in exchange for its Common stock. b. The company purchased a building for $42,000cash. c. The company purchased equipment for $5,700 cash. d. The company purchased $3,100 of supplies and $2,000 of equipment on credit. e. The company paid $840 cash for advertising expenses. f. The company completed a financial plan for a dient and billed that client $5,000 for the service. g. The company designed a finandal plan for another client and immediately collected a $8,600 cash fee. h. The company paid $1,200 cash in dividends to the owner (sole shareholder). i. The company received $4,000 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $1,000 cash on the equipment purchased in transaction d. k. The company paid $2,200 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. complete this questien try antaring reur anwwer in the tabe betae. Complete this question by entering your answers In the tabs below. Determine the company's net income

Answer & Explanation Solved by verified expert

See Answer