Kramer Corporation began business operations and experienced the following transactions during 2013:
1) Issued common stock for $10,000 cash.
2) Provided services to customers for $40,000 on account.
3) Incurred $18,000 of operating expenses on account.
4) Collected $23,000 cash from customers.
5) Paid $15,000 on accounts payable.
Required:
Record the above transactions on a horizontal statements model to reflect their effect on Kramer's financial statements.

Question

Quizplus · Accepted Answer

The Answer of Kramer Corporation began business operations and experienced the following transactions during 2013:
1) Issued common stock for $10,000 cash.
2) Provided services to customers for $40,000 on account.
3) Incurred $18,000 of operating expenses on account.
4) Collected $23,000 cash from customers.
5) Paid $15,000 on accounts payable.
Required:
Record the above transactions on a horizontal statements model to reflect their effect on Kramer's financial statements.

Kramer Corporation Began Business Operations and Experienced the Following Transactions