Reference no: EM132915428

Question - Transaction Analysis - Grant Appraisal Service provides commercial and industrial appraisals and feasibility studies. On January 1, the assets and liabilities of the business were the following:

Cash $9,290

Accounts Receivable 14,890

Accounts Payable 690

Notes Payable 2,590

Common Stock 18,400

Retained Earnings 2,500

The following transactions occurred during the month of January:

Jan 1 Paid rent for January, $1,040.2Received $8,890 payment on customers' accounts.

Jan 3 Paid $590 on accounts payable.

Jan 4 Received $1,690 for services performed for cash customers.

Jan 5 Borrowed $5,090 from a bank and signed a note payable for that amount.

Jan 6 Billed the city $6,290 for a feasibility study performed; billed various other credit customers $1,990.

Jan 7 Paid the salary of an assistant, $4,090.

Jan 8 Received invoice for January utilities, $500.

Jan 9 Paid $6,090 cash for employee salaries.

Jan 10 Purchased a van (on January 31) for business use, $9,890.

Jan 11 Paid $140 to bank as January interest on the outstanding note payable.

Required -

(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Van, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item.

(b) Show the impact (increase or decrease) of transactions 1-11 on the beginning balances, and total the columns to show that assets equal liabilities plus stockholders' equity as of January 31.