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Chapter 1 Accounting Equation Activity - BETA REAL ESTATE COMPANY

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Question;Chapter 1 Accounting Equation Activity;Name;Complete the following activity and save this file on your;hard drive. Then submit your file to your instructor on Canvas.;BETA REAL ESTATE COMPANY;TRANSACTIONS FOR THE MONTH OF AUGUST 20xx;ASSETS;=;LIABILITIES;+;OWNER'S;EQUITY;CASH;ACCOUNTS;RECEIVABLE;SUPPLIES;EQUIPMENT;=;ACCOUNTS;PAYABLE;NOTES;PAYABLE;+;A. BAKER;CAPITAL;A. BAKER;-DRAWING;REVENUE;- EXPENSE;Bal.;\$4,000;\$3,000;\$600;\$ 0;=;\$500;\$ 0;+;\$7,100;1;=;+;2;=;+;3;=;+;4;=;+;5;=;+;6;=;+;7;=;+;8;=;+;9;=;+;Totals;=;+;Andy Baker is the owner of Beta Real Estate Company. When;Andy sells a property, he earns commisiion revenue. Below are the Beta Real;Estate Company transactions that occurred during the month of August.;1. Andy Baker INVESTED an additional \$6,000 cash into Beta;Real Estate Company.;2. The company purchased \$800 of supplies and charged them;with plans to pay for them next month.;3. The company purchased equipment costing \$5,000. The;company paid \$1,000 down in cash and signed a Note Payable for the balance;owed.;4. Andy sold a property and earned a \$2,000 commission. This;commission will be paid by the customer next month.;5. The company paid \$300 office rent for the current month;in cash.;6. Paid \$500 cash for supplies purchased last month and;charged at that time.;7. Collected \$1,600 from a customer who previously owed the;company.;8. The company paid \$400 to their employees for wages.;9. Andy Baker withdrew \$900 cash from the company for;personal use.;REQUIRED;a. Show the effects of the August transactions on the;accounting equation table on the previous page.;b. Prepare an Income Statement, Owner's Equity Statement and;Balance Sheet for Beta Real Estate Company on the next page at the end of;August. (Follow the FINANCIAL statement examples on page 22 in your textbook.;Be sure you are adding the third line to the heading, dollar signs and double;rules in the appropriate places.);="msonormal">

Paper#40523 | Written in 18-Jul-2015

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