The accountant of Action Adventure Games prepared a balance sheet after every 10 day period. The only resources invested by its sole stockholder were at the start of the company on June 1. During June, the first month of operation, the following balance sheets were prepared:ACTION ADVENTURE GAMESBalance SheetJune 10Assets?Equity?Cash……………………..$60,000Common stock……………..$60,000Total assets………………$60,000Total liabilitiesand equity………………$60,000ACTION ADVENTURE GAMESBalance SheetJune 20 Assets?Liabilities?Cash……………………. $48,000Notes payable……. $18,000Land……………………. 10,000Equity?Building…………………20,000Common stock…..60,000Total assets…………..$78,000Total liabilities
andequity……………..$78,000ACTION ADVENTURE GAMESBalance SheetJune 30Assets?Liabilities?Cash……………………. $51,000Accounts payable….$2,000Office supplies…………2,000Notes payable……. 18,000Land……………………. 10,000Equity?Building…………………20,000Common stock…..60,000??Retained earnings 3,000Total assets…………..$83,000Total liabilities andequity……………..$83,000Required: Describe the nature of each of the four transactions that took place between the balance sheet dates shown. Assume only one transaction affected each account.June10??20??30?
What will be an ideal response?
| June | 10 | The owner invested $60,000 cash in the company in exchange for common stock. |
| ? | 20 | Land and building were purchased for $12,000 cash and an $18,000 note payable. |
| ? | 30 | Office supplies were purchased for $2,000 on account. Cash was received for $3,000 of services provided. |
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