Below are the external transactions for Shockers Incorporated. 1. Issue common stock in exchange for cash. 2.

Question:

Below are the external transactions for Shockers Incorporated.

1. Issue common stock in exchange for cash.

2. Purchase equipment by signing a note payable.

3. Provide services to customers on account.

4. Pay rent for the current month.

5. Pay insurance for the current month.

6. Collect cash from customers on account.

Below are the external transactions for Shockers Incorporated. 1. Issue

Required:
Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction increases, decreases, or has no effect. The first item is provided as anexample.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...