226.The accounts of Mason Company at the end of the past year report the following amounts:
AccountsAmount
Dividends$15,500
Revenues$97,000
Expenses$43,800
Common stock2,000
If the beginning equity for the year was $173,000, calculate the ending equity for Mason Company.
227.Cornelia's Closet has the following account balances for the dates given:
October 1October 31
Cash$40,00060,000
Accounts Receivable40,00038,000
Accounts payable6,000?
Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.
October 1st
Equity = $74,000; October 31st
Equity = $94,000
Feedback: Total assets:
October 1October 31
Cash$40,00060,000
Accounts Receivable40,00038,000
Total assets$80,000$98,000
228.If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?
229.Soo Lin, the sole stockholder, began an Internet Consulting practice organized as a corporation and completed these transactions during April of the current year:
April.1Invested $100,000 of her personal savings into a checking account opened in the name of the business.
2Rented office space and paid $1,200 cash for the month of September.
3Purchased office equipment for $30,000, paying $8,000 cash and agreeing to pay the balance in one year.
4Purchased office supplies for $750 cash.
8Completed work for a client and immediately collected $2,700 cash for the services.
15Completed $3,600 services for a client on credit.
20Received $3,600 from a client for the work completed on September 15.
30Paid the office secretary’s monthly salary, $3,000 cash.
30The corporation paid a $2,000 dividend.
Show the effects of the above transactions on the accounting equation of Soo Lin, Consultant. Use the following format for your answers. The first item is shown as an example.
Increase = I Decrease = D No effect = N
DateAssetsLiabilitiesEquity
Example:
April 1INI