November 30, 2017 = $27,000
Larry Power, Capital balance, November 30, 2017 =
$69,100
Larry Power started a new business in the name of
Power Electrical on October 1, 2017. During
October, a number of activities occurred and the
following totals resulted at October 31, 2017
(shown
in accounting equation format):
- November 30 2017 27 000 Larry Power Capital Balance November 30 2017 69 100 Larry Power Started A New Business 1 (71.45 KiB) Viewed 19 times
Problem 1-8AAnalyzing transactions LO5,7 CHECK FIGURE: Accounts payable balance, November 30, 2017 = $27,000 Larry Power, Capital balance, November 30, 2017 = $69,100 Larry Power started a new business in the name of Power Electrical on October 1, 2017. During October, a number of activities occurred and the following totals resulted at October 31, 2017 (shown in accounting equation format): ast Labe Accounts Office Accounts Office + Supp $7,000 + $1,900 Dectrical Equip Lany Powe Capital Equip Cash $30,000 Pagatis $28.000 + $14.000 $18,000 + $62.900 During November, the following occurred: NOW 1 Rated office space and paid cash for the montant of $7.200 3 Purchased electrical equipment for $18.000 from an echan who was going out of business, by using $10,000 in personal funds and agreeing to pay the balance in 30 days Purchased office supptes by paying $1.800 cash No completed electrical work and immediately collected $2,000 for doing the work 8Purchased $5.200 of office equipment on credit. 15 Completed thical work on credit in the amount of $6.000. 16 and red a part time electean who will be paid $5.300 aach month. He will begin work in the wooks Purchased $1,000 or office suppreso creat 18 20 Paid for the office equipment purchased on November 8 24 $4,800 for ctrical won the balance is que in 30 days 28 Received $6,000 for the work completed on November 15 30 Pad the office assistants sasary of $4,400. 30 Pad the month of $3.000 30 Power with $1,400 from the business for personal use Required Use additions and subtractions to show the effects of each November activity on the items in the equation. Do not determine new totals for the items of the equation after each transaction. Next to each change in equity, state whether the change was caused by an investment, a revenue, an expense, or a withdrawal. Determine the final total for each item and verify that the equation is in balance. Analysis Component: Revenue is not recorded on November 28. Explain, using your understanding of GAAP.