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Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value.
b. The company paid $1,500 cash for rent of office space for the month.
c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
d. The company completed work for a client and immediately collected the $2,500 cash earned.
e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.
f. The company purchased additional equipment for $6,000 cash.
g. The company paid an assistant $3,000 cash as wages for the month.
h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.
i. The company paid $10,000 cash to settle the liability created in transaction c.
j. Owner withdrew $1,000 cash from the company for personal use.
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