The Following Events Apply to Bowman's Cleaning Service for 2016

question 2

Essay

The following events apply to Bowman's Cleaning Service for 2016.
1).Issued stock for $44,000 cash.
2).On May 1,paid $27,000 for one year's rent in advance.
3).Purchased on account $4,500 of supplies to be used in the business.
4).Performed services of $68,400 and received cash.
5).At December 31,adjusted the records for the expired rent.
6).At December 31,an inventory of supplies showed that $660 of supplies were still unused.
Required: Draw an accounting equation and record the effects of the above events under the appropriate account headings.Show the year-end total for each account.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.

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Definitions:

Expected Return

The anticipated amount of returns an investment is expected to generate, calculated as a weighted average of possible returns, based on their probabilities.

Risk-free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bills.

Real Estate

Property consisting of land or buildings, and anything affixed to the land, that has economic value.

Mutual Fund Shares

Units of ownership in a mutual fund, offering investors a proportionate stake in the fund's portfolio and its income.