Accounting: Strand corp started an accounting – exam consulting

Subject: Business    / Accounting
Question

strand corp started an accounting – exam consulting business for wayward accounting students on january 1, 2013 and for the year had the following transactions:

1. started the company with a $125,000 investment in return for stock

2. sold consulting services for $ 350,000 50% on account,the remainder for cash

3. purchased office supplies of $10,000 on account

4. paid wages, $ 150,000

5.sold additional consulting services for $200,000,50% on account, the remainder for cash

6. purchased a computer system for $15,000 by borrowing from the bank ( current value=$20,000)

7.collected $150,000 from customers previously sold to on account

8. purchased office furniture for $50,000 with 10% down and borrowing remainder from bank

9. paid the bank 50% of what owed them

10.paid the following a. utilities -$75,000

b, rent – $115,000

c,insurance-$45,000

d, adverstising of -$50,000

11. paid dividends of $ 15,000

12. additional investment in the company was made of $100,000

REQUID.

1. using the balance sheet equation (A=L+E). accounting for the transactions above

2.calculate ending account balances to prove that A =L+E

3. prepare an income statement in proper form

4. prepare a balance sheet in proper form