Question : 241. Verity Siding Company, Inc., owned by S. Verity, began : 1257627

 

 241.  Verity Siding Company, Inc., owned by S. Verity, began operations in May and completed the following transactions during that first month of operations. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

 

 

May

1

S. Verity invested $90,000 cash in the company.

 

2

The company purchased $25,000 in office equipment. It paid $10,000 in cash and signed a note payable promising to pay the $15,000 over the next three years.

 

2

The company rented office space and paid $3,000 for the May rent.

 

6

The company installed new vinyl siding for a customer and immediately collected $5,000.

 

7

The company paid a supplier $2,000 for siding materials used on the May 6 job.

 

8

The company purchased a $2,500 copy machine for office use on credit.

 

9

The company completed work for additional customers on credit in the amount of $16,000.

 

15

The company paid its employees’ salaries $2,300 for the first half of the month.

 

17

The company installed new siding for a customer and immediately collected $2,400.

 

20

The company received $10,000 in payments from the customers billed on May 9.

 

28

The company paid $1,500 on the copy machine purchased on May 8. It will pay the remaining balance in June.

 

31

The company paid its employees’ salaries $2,400 for the second half of the month.

 

31

The company paid a supplier $5,300 for siding materials used on the remaining jobs completed during May.

 

31

The company paid $450 for this month’s utility bill.

 

 

VERITY SIDING CO.

 

 

 

 

 

 

 

 

 

 

 

Assets    =

Liabilities +

Equity

Date

 

Accounts

 

Accounts

Notes

 

 

 

 

May

Cash

Receivable

Equipment

Payable

Payable

Common stock

Dividends

Revenues

Expenses

1

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

28

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

$         –  

$         –  

$         –  

$         –  

$         –  

$         –  

$           –  

$         –  

$         –