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Question
The accountant of Action Adventure Games, Inc. prepared a balance sheet after every 10 day period. The only resources invested by the owner 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 GAMES, Inc. Balance Sheet June 10 | |||
| Assets | Stockholders' Equity | ||
| Cash"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. | $60,000 | Common stock +Retained earnings"u00a6"u00a6"u00a6"u00a6"u00a6.. | $60,000 |
| Total assets"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 | $60,000 | Total liabilities and equity"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. | $60,000 |
| ACTION ADVENTURE GAMES, Inc. Balance Sheet June 20 | |||
| Assets | Liabilities | ||
| Cash"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. | $48,000 | Notes payable"u00a6"u00a6. | $18,000 |
| Land"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. | 10,000 | Stockholders' Equity | |
| Building"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 | 20,000 | Common stock + Retained earnings"u00a6.. | 60,000 |
| Total assets"u00a6"u00a6"u00a6"u00a6.. | $78,000 | Total liabilities and equity"u00a6"u00a6"u00a6"u00a6"u00a6.. | $78,000 |
| ACTION ADVENTURE GAMES, Inc. Balance Sheet June 30 | |||
| Assets | Liabilities | ||
| Cash"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. | $51,000 | Accounts payable"u00a6. | $2,000 |
| Office supplies"u00a6"u00a6"u00a6"u00a6 | 2,000 | Notes payable"u00a6"u00a6. | 18,000 |
| Land"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. | 10,000 | Stockholders' Equity | |
| Building"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 | 20,000 | Common stock + Retained earnings"u00a6.. | 63,000 |
| Total assets"u00a6"u00a6"u00a6"u00a6.. | $83,000 | Total liabilities and equity"u00a6"u00a6"u00a6"u00a6"u00a6.. | $83,000 |
Required: 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.
| June | ||
| 10 | ||
| 20 | ||
| 30 | ||
Answer
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