Question: Meg McIntyre opened a public relations firm
Meg McIntyre opened a public relations firm called Pop Chart on August 1, 2018. The following amounts summarize her business on August 31, 2018:
During September 2018, the business completed the following transactions:
a. Received contribution of $14,000 cash from Meg McIntyre in exchange for common stock.
b. Performed service for a client and received cash of $1,600.
c. Paid off the beginning balance of accounts payable.
d. Purchased office supplies from OfficeMax on account, $1,200.
e. Collected cash from a customer on account, $2,300.
f. Cash dividends of $1,500 were paid to stockholders.
g. Consulted for a new band and billed the client for services rendered, $4,000.
h. Recorded the following business expenses for the month:
Paid office rent: $900.
Paid advertising:$450.
Analyze the effects of the transactions on the accounting equation of Pop Chart using the format presented above.
Transcribed Image Text:
ASSETS LIABILITIES + EQUITY Contributed Capital Retained Earnings Accounts + Common Payable Cash + Accounts + Office + Land Dividends +Service - Rent -Advertising Revenue Expense Expense Receivable Supplies Stock Bal. $2,600 + S2,500 + s0 +$16,000 $5,000 + $13,600 + $2,500
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