Halley Burton Began a Web Consulting Practice as a Corporation

question 175

Essay

Halley Burton began a Web Consulting practice as a corporation and completed these transactions during September of the current year.
$\begin{array}{|l|l|l|}\hline \text { Sept } & 1 & \begin{array}{l}\text { Invested } \$ 100,000 \text { of his personal savings into a checking account opened in } \\\text { the name of the business and received stock in the corporation. }\end{array} \\\hline & 2 & \text { Rented office space and paid } \$ 1,200 \text { cash for the month of September. } \\\hline & 3 & \begin{array}{l}\text { Purchased office equipment for } \$ 30,000, \text { paying } \$ 8,000 \text { cash and agreeing to } \\\text { pay the balance in one year. }\end{array}\\\hline & 4 & \text { Purchased office supplies for } \$ 750 \text { cash. } \\\hline & 8 & \begin{array}{l}\text { Completed work for a client and immediately collected } \$ 2,700 \text { cash for the } \\\text { services. }\end{array} \\\hline & 15 & \text { Completed } \$ 3,600 \text { services for a client on credit. }\\\hline & 20 & \text { Received } \$ 3,600 \text { from a client for the work completed on September } 15 . \\\hline & 30 & \text { Paid the office secretary's monthly salary, } \$ 3,000 \text { cash. } \\\hline & 30 & \text { Web Consulting paid a } \$ 2,000 \text { cash dividend. }\\\hline\end{array}$
Show the effects of the above transactions on the accounting equation of Web Consulting.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N
$$\begin{array} { | l | l | l | l | } \hline \text { Date } & \text { Assets } & \text { Liabilities } & \text { Equity } \\\hline \text { Example: } & & & \\\hline \text { September I } & \text { I } & \text { N } & \text { I } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$

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Definitions:

Perpetual Inventory System

An accounting approach that continuously updates inventory records after each transaction, providing a real-time view of inventory levels.

Liability Credited

A credit entry in accounting representing an increase in liabilities, reflecting that a company has received something of value for which it must pay in the future.

Asset Debited

An accounting entry that increases the value of an asset account.

F.O.B. Destination

A shipping term indicating that the seller bears the shipping costs and maintains ownership and responsibility for the goods until they are delivered to the buyer's specified location.