Finanza

Ex. 152
Don Dixon decides to open a cleaning and laundry service near the local college campus that will operate as a sole proprietorship. Analyze the following transactions for the month ofJune in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (–) the dollar amount of each item affected. Indicate the new balance of eachitem after a transaction is recorded. It is not necessary to identify the cause of changes in owner's equity.

Transactions
(1) Don Dixon invests $20,000 in cash to start a cleaning andlaundry business on June 1.
(2) Purchased laundry equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days.
(3) Purchased laundry supplies for $1,200 cash.(4) Received a bill from Campus News for $300 for advertising in the campus newspaper.
(5) Cash receipts from customers for cleaning and laundry amounted to $1,500.
(6) Paidsalaries of $200 to student workers.
(7) Billed the Tiger Football Team $100 for cleaning and laundry services.
(8) Paid $300 to Campus News for advertising that was previously billed inTransaction 4.
(9) Don Dixon withdrew $700 from the business for living expenses.
(10) Incurred utility expenses for month on account, $200.

Ex. 152 (cont.)

Trans- AccountsLaundry Laundry Accounts D. Dixon
action Cash + Receivable + Supplies + Equipment = Payable + Capital
(1)
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Balance
(2)——————————————————————————————————————————
Balance
(3)
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Balance
(4)
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Balance
(5)
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Balance
(6)——————————————————————————————————————————
Balance
(7)
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Balance
(8)
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Balance
(9)...