Question

Mike Greenberg opened Blue Window Washing Co. on July 1, 2022. During July, the following transactions were completed:

July 1: Owner invested $9,100 cash in the company.
July 1: Purchased a used truck for $6,000 cash.

Answer 1

The question pertains to the basic accounting transactions for a new company, in which an owner investment and a purchase of an asset were made. These transactions affect the company's cash, assets, and owner's equity accounts and are essential for creating accurate financial statements.

Step-by-step explanation:

The question involves the accounting transactions for Mike Greenberg's Blue Window Washing Co. which he initiated in July. When the owner invested $9,100 in cash into the company, this increased the cash account and also the owner's equity. This entry would be recorded as a debit to the Cash account and a credit to Owner's Equity, reflecting the owner's investment into the business.

On purchasing a used truck for $6,000 cash, the assets of the company increased by the value of the truck, but the cash was reduced by the same amount. This transaction is also recorded in two accounts, with a debit to the Vehicles (an asset account) and a credit to the Cash account, representing the cash outflow. These transactions are foundational in financial accounting, which is concerned with recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time. Through these records, the business can produce financial statements that provide valuable information for decision-makers.

Answer 2

The subject of this question is Business and it asks about the transactions completed by Mike Greenberg when he opened Blue Window Washing Co. on July 1, 2022.

Step-by-step explanation:

The subject of this question is Business. The question asks about the transactions completed by Mike Greenberg when he opened Blue Window Washing Co. on July 1, 2022. The transactions mentioned are related to the financial aspects of starting a business, such as owner investment and purchasing assets.