The following events apply to Bowen's Cleaning Service for 2013.
1). Issued stock for $14,000 cash.
2). On May 1, paid $9,000 for one year's rent in advance.
3). Purchased on account $2,500 of supplies to be used in the business.
4). Performed services of $18,400 and received cash.
5). At December 31, an inventory of supplies showed that $360 of supplies were still unused.
6). At December 31, adjusted the records for the expired rent.
Required:
Draw an accounting equation and record the effects of the above events under the appropriate account headings. Show the year-end total for each account.

Question

Quizplus · Accepted Answer

The Answer of The following events apply to Bowen's Cleaning Service for 2013.
1). Issued stock for $14,000 cash.
2). On May 1, paid $9,000 for one year's rent in advance.
3). Purchased on account $2,500 of supplies to be used in the business.
4). Performed services of $18,400 and received cash.
5). At December 31, an inventory of supplies showed that $360 of supplies were still unused.
6). At December 31, adjusted the records for the expired rent.
Required:
Draw an accounting equation and record the effects of the above events under the appropriate account headings. Show the year-end total for each account.

The Following Events Apply to Bowen's Cleaning Service for 2013