Identifying effects of transactions using the accounting equation LO PI Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
A. Owner invested $59,000 cash in the company along with equipment that had a $14,000 market value.
B. The company paid $2,000 cash for rent of office space for the month.
C. The company purchased $11,000 of additional equipment on credit (payment due within 30 days).
D. The company completed work for a client and immediately collected the $2,300 cash earned.
E. The company completed work for a client and sent a bill for $7,600 to be received within 30 days.
F. The company purchased additional equipment for $5,800 cash.
G. The company paid an assistant $3,400 cash as wages for the month.
H. The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e.
I. The company paid $11,000 cash to settle the liability created in transaction c.
J. Owner withdrew $1,200 cash from the company for personal use.
Required:
Enter the impact of each transaction on individual items of the accounting equation.