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| Teaching Since: | May 2017 |
| Last Sign in: | 343 Weeks Ago, 6 Days Ago |
| Questions Answered: | 19234 |
| Tutorials Posted: | 19224 |
MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
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.Â
NicoMitchell started a new business, Nico’s Solutions, and completed the followingtransactions during its first year of operations.
 a. N.Mitchell invests $90,000 cash and office equipment valued at $20,000 in thecompany in exchange for its common stock.
 b. Thecompany purchased a $150,000 building to use as an office. It paid $40,000 incash and signed a note payable promising to pay the $110,000 balance over thenext ten years.
 c. Thecompany purchased office equipment for $25,000 cash.
d. The company purchased $1,200 of officesupplies and $1,700 of office equipment on credit.
 e. Thecompany paid a local newspaper $750 cash for printing an announcement of theoffice’s opening.
 f. The company completed a financial plan fora client and billed that client $2,800 for the service.
 g. Thecompany designed a financial plan for another client and immediately collecteda $4,000 cash fee.
 h. The company paid $11,500 cash in dividendsto the owner (sole shareholder).
 i. Thecompany received $1,800 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 $2,500 cash for the office secretary’s 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 each transaction on individual items of the accountingequation. Show new balances after each transaction.
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