Transaction Analysis – Accounting
Help me answer this problem. I have been trying to for a few hours and no success I continiously get unequal answers and I dont know what the problem may be.
NicoMitchell started a new business Nicos Solutions and completed the followingtransactions during its first year of operations.
a. N.Mitchell invests $90000 cash and office equipment valued at $20000 in thecompany in exchange for its common stock.
b. Thecompany purchased a $150000 building to use as an office. It paid $40000 incash and signed a note payable promising to pay the $110000 balance over thenext ten years.
c. Thecompany purchased office equipment for $25000 cash.
d. The company purchased $1200 of officesupplies and $1700 of office equipment on credit.
e. Thecompany paid a local newspaper $750 cash for printing an announcement of theoffices opening.
f. The company completed a financial plan fora client and billed that client $2800 for the service.
g. Thecompany designed a financial plan for another client and immediately collecteda $4000 cash fee.
h. The company paid $11500 cash in dividendsto the owner (sole shareholder).
i. Thecompany received $1800 cash from the client described in transaction f.
j. Thecompany made a payment of $700 cash on the equipment purchased in transactiond.
k. Thecompany paid $2500 cash for the office secretarys wages.
Required
1.Create a table like the one we did in class using the following headingsfor the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment;Building; Accounts Payable; Notes Payable; Common Stock; Dividends; Revenues;and Expenses.
2. Useadditions and subtractions within the table created in part 1 to show thedollar effects of eachtransaction on individual items of the accountingequation. Show new balances after each transaction.