Financial Acctg- Problem #1
Strand Corp started an accounting-exam consulting business for wayward
accounting students on July 1, 2022, and for
the month had the following transactions:
I
1. Started the company with a $170,000 investment in return for stock
2. Sold consulting services for $300,000, 50% on account, the remainder for cash
3. Purchased office supplies of $10,000 on account
4. Paid wages, $120,000
5. Purchased a computer system for $15,000 by putting 10% down and borrowing the
remainder from the bank (current value = $20,000)
6. Collected $125,000 from customers previously sold to on account
7. Paid the bank 50% of what was owed them
8. Paid the following expenses:
a.Utilities- $25,000
b.Rent-$60,000
c.Insurance- $15,000
