Perez Company had the following selected transactions during the month of May. Show how the financial effects of each transaction would be recorded using the following format. The first transaction has been completed as an example. Juanita Perez invested $10,000 in the company on May 1.
|
ASSETS |
= |
LIABILITIES |
+ |
OWNERS’ EQUITY |
|||
|
Date |
Accounts |
Cash |
Other |
Contributed |
Retained |
||
|
Beginning Amounts |
70,000 |
+90,000 |
= |
60,000 |
+ |
60,000 |
+40,000 |
|
1 May |
Cash |
10,000 |
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|
Contributed Capital |
10,000 |
May 5 Sold goods for $30,000 cash. The goods had cost $14,000. 10 Purchased merchandise inventory for $45,000 cash.
15 Paid back part of a bank loan, $1,500 (decrease Notes Payable).
22 Purchased equipment for $4,000 using cash.
31 Paid the utility company for services consumed, $600.
31 Paid $7,500 wages for labor services consumed.