Nancy Tercek started a delivery service, Wildhorse Co., on June 1, 2019. The following transactions occurred during the month of June. June 1 Stockholders invested $19,200 cash in the business in exchange for common stock. 2 Purchased a used van for deliveries for $14,100. Nancy paid $3,800 cash and signed a note payable for the remaining balance. 3 Paid $500 for office rent for the month. 5 Performed $4,500 of services on account. 9 Declared and paid $200 in cash dividends. 12 Purchased supplies for $200 on account. 15 Received a cash payment of $1,100 for services performed on June 5. 17 Purchased gasoline for $300 on account. 20 Received $1,300 cash for services performed. 23 Made a cash payment of $800 on the note payable. 26 Paid $250 for utilities. 29 Paid for the gasoline purchased on account on June 17. 30 Paid $2,270 for employee salaries. Collapse question part (a)

Show the effects of the previous transactions on the accounting equation using the following format.

Question

Business

Aidyn Zuniga

12 July, 13:23

Nancy Tercek started a delivery service, Wildhorse Co., on June 1, 2019. The following transactions occurred during the month of June. June 1 Stockholders invested $19,200 cash in the business in exchange for common stock. 2 Purchased a used van for deliveries for $14,100. Nancy paid $3,800 cash and signed a note payable for the remaining balance. 3 Paid $500 for office rent for the month. 5 Performed $4,500 of services on account. 9 Declared and paid $200 in cash dividends. 12 Purchased supplies for $200 on account. 15 Received a cash payment of $1,100 for services performed on June 5. 17 Purchased gasoline for $300 on account. 20 Received $1,300 cash for services performed. 23 Made a cash payment of $800 on the note payable. 26 Paid $250 for utilities. 29 Paid for the gasoline purchased on account on June 17. 30 Paid $2,270 for employee salaries. Collapse question part (a)

Show the effects of the previous transactions on the accounting equation using the following format.

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Answers (1)

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Dracula · Answer 1

Assets Liabilities Equity

Issuance 19200 19200

Purchase of 14100 10300

equipment - 3800

rent expense - 500 500

acc. service 4500 4500

dividends - 200 - 200

supplies 200 200

collect 1100

on customer - 1100

cash service 1100 1100

gasoline exp 300 - 300

cash service 1300 1300

payment NP - 800 - 800

Utilities - 250 - 250

pay gas - 300 - 300

employees - 2270 - 2270

Totals 32280 9700 23580

Explanation:

the purchase of the van increases asset but also the cash used decrease it.

same sitiuation ocurs when collecting the customer accounts.

the assets increase through cash but decrease form account receivable as they are no longer liable for the amount.

When a liability is paid we decrease the assets for the cash used and the liability as we perform our obligation.