Question

Q#1. Waldo Grunen started his own advertising agency on March 2 of this year Until the
new hirm is better established, Waldo expects to do all the work himself. During the first
month of operations his business, Grunen Ad Agency, was involved in the following
transactions
Waldo deposited $10,000 of personal funds in a bank account in the firm's
name
C.
b. Purchased office equipment for $6000 on account.
Purchased advertising supplies for $410 on cash.
d. Billed clients $500 for services rendered.
Paid $600 office rent for March.
f. Paid $3,000 on the account incurred for the purchase of office equipment.
g. Billed clients $2,200 for services performed.
h. Collected $500 from a customer, which was due on account.
i. Waldo wrote and cashed a check of $1000 from the business for his personal
use.
j.
k
Received a $150 electric bill for March. Payment of bill is due on April 20.
Work was performed in March for which clients will be billed $800 during April.
Waldo was simply too busy during March to prepare and mail the bill.
A count of advertising supplies shows supplies costing $140 are still on hand at
the end of March.
1.
Requirement: Show the effects of foregoing transactions under an accounting equation.
Total the account categories and make sure that the equation is in balance.
​

Answer 1

Answer:

Waldo deposited $10,000 of personal funds in a bank account in the firm's

name