(SOLVED) Lily Coe started a new business on January 1

2014
Lily Coe started a new business on January 1, 2014, called Coe Consulting. She develops
financial investment plans for young adults. During the business's first year of operations, the
following activities occurred:a. Coe invested $120,000 cash and office equipment valued at
$10,000 in the business.
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january-1-2014
Lily Coe started a new business on January 1, 2014, called Coe Consulting. She develops
financial investment plans for young adults. During the business's first year of operations, the
following activities occurred:a. Coe invested $120,000 cash and office equipment valued at
$10,000 in the business.b. Purchased a small building for $240,000 to be used as an office.
Paid $50,000 in cash and signed a note payable promising to pay the balance over several
years.c. Purchased $18,000 of office equipment for cash.d. Purchased $4,000 of office supplies
and $6,400 of office equipment on credit.e. Paid a local newspaper $4,500 for an
announcement that the office had opened.f. Completed a financial plan on credit and billed the
client $6,000 for the service.g. Designed a financial plan for another client and collected an
$8,000 cash fee.h. Coe withdrew $5,500 cash from the company bank account to pay personal
expenses.i. Coe signed a $20,000 contract for the office to be painted in February 2015. A
deposit of $6,000 will be paid on January 15, 2015.j. Received $4,000 from the client described
in (f).k. Paid for the equipment purchased in (d).1. Paid $3,800 cash for the office secretary's
wages.Required1. Create a table like the one presented in Exhibit 1.15, using the following
headings for the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment;
Building; Accounts Payable; Notes Payable; and Lily Coe, Capital. Leave space for an
Explanation of Equity Transaction column to the right of the Capital column. Identify revenues
and expenses by name in the Explanation column.2. Use additions and subtractions to show
the effects of the above transactions on the elements of 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.3. Prepare an
income statement, a statement of changes in equity, and a balance sheet for 2014 using the
formats provided.View Solution:
Lily Coe started a new business on January 1 2014
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january-1-2014

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