Question Details

(solution) Salem Company started its operations on January 1, 2016. The


Salem Company started its operations on January 1, 2016. The following transactions took place during the first month of operations:

Jan 1: Salem invests $480,000 cash to start the business.

Jan 5: Purchased furniture for $72,000, paying $18,000 in cash and sign a note for the remaining balance.

Jan 8: Purchased supplies for $3,600 on credit.

Jan 12: Paid $6,300 cash for January rent.

Jan 18: Paid $1,800 cash for office supplies purchased on January 8.

Jan 24: Services billed to customers amount to $36,000.

Jan 25: Received utility bills for $5,400 for the month of January.

Jan 27: Paid $19,800 cash for salaries.

Jan 29:  Received $27,000 cash from customers in payment for services billed on January 24.

Jan 31: Salem withdrew $10,100 from the business for personal use.

Required:

1. Using a table, show the effect of the above transactions on the accounting equation.

2. Prepare the financial statements of Salem Company on January 31, 2016.

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 13, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now