Reconstructing Events from the Financial Statements Costantino Company just started in business. The first seven transactions have been entered into and processed by the company’s computerized accounting information system. To be sure the accounting system is operating properly, Jim Costantino, the owner, has printed out the financial statements as produced by the accounting system after seven transactions.
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Assets: |
Liabilities and Equity: |
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Cash |
$22,850 |
Payable to bank |
$6,285 |
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Equipment |
11,000 |
Payable for equipment |
11,000 |
|
Total assets |
$33,850 |
Owner investment |
15,000 |
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Revenues |
$2,250 |
Retained earnings |
1,565 |
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Expenses: |
Total liabilities and equity |
$33,850 |
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|
Rent |
400 |
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Wages |
250 |
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Internet service |
35 |
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|
Net income |
$1,565 |
Required
Identify the seven transactions and as much detail about each transaction as you can.