Essay
The following events are for Fun Travel Services for the year 2012,the first year of operations.Assume that all transactions involve the receipt or payment of cash.
1)The business acquired $20,000 from stock issued to owners.
2)Creditors loaned the company $7,000.
3)The company provided services to its customers and received $35,000.
4)The company paid expenses amounting to $23,000.
5)Purchased land for $9,000.
6)The company paid a dividend of $3,000 to its owners.
Required:
a)Show the effects of the above transactions on the accounting equation.Use appropriate elements and account headings.
b)Prepare a balance sheet and income statement for the year 2012.
Correct Answer:
Verified
Correct Answer:
Verified
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