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Soo Lin, the Sole Stockholder, Began an Internet Consulting Practice

Question 219

Essay

Soo Lin, the sole stockholder, began an Internet Consulting practice organized as a corporation and completed these transactions during April of the current year:  April 1Invested $100,000 of her personal savings into a checking account opened in the name of the business. 2Rented office space and paid $1,200 cash for the month of  September.  3Purchased office equipment for $30,000, paying $8,000 cash  and agreeing to pay the balance in one year.  4Purchased office supplies for $750 cash. 8Completed work for a client and immediately collected  $2,700 cash for the services.  15Completed $3,600 services for a client on credit. 20Received $3,600 from a client for the work completed on  September 15 . 30Paid the office secretary’s monthly salary, $3,000 cash.  30The corporation paid a $2,000 dividend.\begin{array}{llcc} \text { April } & \text {1\quad Invested \( \$ 100,000 \) of her personal savings into a checking }\\& \text {\quad account opened in the name of the business. } &\\ &\text {2\quad Rented office space and paid \( \$ 1,200 \) cash for the month of } &\\& \text { September. } &\\& \text { 3\quad Purchased office equipment for \( \$ 30,000 \), paying \( \$ 8,000 \) cash } &\\& \text { and agreeing to pay the balance in one year. } &\\& \text { 4\quad Purchased office supplies for \( \$ 750 \) cash. } &\\ &\text {8\quad Completed work for a client and immediately collected } &\\& \text { \( \$ 2,700 \) cash for the services. } &\\& \text { 15\quad Completed \( \$ 3,600 \) services for a client on credit. } &\\& \text {20\quad Received \( \$ 3,600 \) from a client for the work completed on } &\\& \text { September 15 . } &\\ &\text {30\quad Paid the office secretary's monthly salary, \( \$ 3,000 \) cash. } &\\& \text { 30\quad The corporation paid a \( \$ 2,000 \) dividend.} &\\\end{array}
Show the effects of the above transactions on the accounting equation of Soo Lin, Consultant. Use the following format for your answers. The first item is shown as an example.
Increase = I Decrease = D No effect = N  Date  Assets  Liabilities  Equity  Example:  Apri 1  I  N  I \begin{array} { | c | c | c | c | } \hline \text { Date } & \text { Assets } & \text { Liabilities } & \text { Equity } \\\hline \text { Example: } & & & \\\hline \text { Apri 1 } & \text { I } & \text { N } & \text { I } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}

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