Part a
Indicate the Effect of Each Transaction During the Month

question 48

Essay

Part A
Indicate the effect of each transaction during the month of October 2013 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.
a.Opened a business bank account for Jones, Inc., with an initial deposit of $\$ 45,000$ in exchange for capital stock.
b. Paid rent on the office building for the month $\$ 2,000$ .
c.Received cash for fees earned of $\$ 5,000$ .
d.Purchased equipment, $\$ 7,000$ .
e.Borrowed $\$ 20,000$ by issuing \& note payable.
f.Paid salaries for the monith, $\$ 1,000$ .
g.Received cash for fees earned of $\$ 8,000$ .
h. Paid dividends, $\$ 3,000$ .
i. Paid interest on the note, $\$ 100$ . Part B
Using the information from Part A, prepare (1) an income statement, (2) a statement of retained earnings, (3) a balance sheet, and (4) a statement of cash flows for the month of October.

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Definitions:

Executive Office

A branch of government responsible for enforcing laws and managing the administration of public policy, typically headed by the President or Prime Minister.

President

The elected head of state and government in a republic, particularly referring to the President of the United States.

Agencies

Organizations or bodies established by the government to perform specific functions, often involved in administering policy and regulation in various areas.

Unitary Executive Theory

A concept in constitutional law that suggests the President possesses the power to control the entire executive branch fully.