I need an explanation for this Accounting question to help me study.
- Prepare an expanded accounting equation worksheet for the Zeon Company to show the effect of the following transactions on the given dates – our accounting period is January:
- January 2 Investment of $75,000 in cash into the business by stockholders.
- January 4 Paid $10,000 in cash toward a building that cost $90,000 with the rest being borrowed from the bank to be paid back in 5 years.
- January 10 Bought inventory on credit for $4,200
- January 14 Paid cash wages to employees who worked in January for the business for $2,300.
- January 21 Sold merchandise for $900 in cash. This merchandise (inventory) originally cost $500.
- January 30 Received a bill from the utilities company for $600 for utilities used during January that will be due in February.
- January 31 Paid cash dividends of $300 to stockholders.
- Prepare the income statement, statement of stockholders equity, balance sheet and cash flow statement for the month of January for Zeon.
- Prepare an expanded accounting equation worksheet for the Zeon Company for February given what was done in January and the following transactions:
- February 5 Paid $750 in cash to the bank on the loan borrowed in January and paid $900 in interest on that loan.
- February 11 Paid the bill from the utilities company from January
- February 12 Paid the accounts payable associated with the inventory purchased in January.
- February 18 Sold merchandise to a customer for $1,200 in cash. This merchandise originally cost $750.
- February 27 Received a bill from the utilities company for $585 for utilities used during February that will be due in March.
- February 28 Paid cash dividends of $300 to stockholders.
- Prepare the income statement, statement of stockholders equity, balance sheet and cash flow statement for the month of February for Zeon.
