Solved: FAC101-Principles of Financial Accounting

Paper instructions: Problem-1 Natalie Holden began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Holden (the owner) completed these transactions: a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days. f. The company purchased computers of $6,000 on credit. g. The company paid assistant $2,000 cash as wages for the month. h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $10,000 cash to settle the liability created in transaction c. j. Owner withdrew $1,000 cash from the company for personal use. You are required to: Justify that Accounting Equation remains balanced under all the circumstances of transactions. Problem-2 HV Consulting was started on April 1, 2019 by Hannah Venedict. Following are the selected events and transactions occurred during April 2019. a. Venedict invested $............. cash along with office equipment valued at $......... in a new sole proprietorship named HV Consulting. b. The company purchased land valued at $............and a building valued at $............. The purchase is paid with $............cash and a long-term note payable for $............. c. The company purchased $............of office supplies on credit. d. Venedict invested her personal automobile in the company. The automobile has a value of $............and is to be used exclusively in the business. e. The company purchased $............of additional office equipment on credit. f. The company paid $............cash salary to an assistant. g. The company provided services to a client and collected $............cash. h. The company paid $............ cash for this month’s utilities. i. The company paid $............cash to settle the account payable created in transaction c. j. The company purchased $............of new office equipment by paying $............cash. k. The company completed $...........of services for a client, who must pay within 30 days. l. The company paid $............cash salary to an assistant. m. The company received $............cash in partial payment on the receivable created in transaction k. n. Venedict withdrew $............cash from the company for personal use.
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