Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions.
1. Issue 10,000 shares of common stock in exchange for $32,000 in cash.
2. Purchase land for $19,000. A note payable is signed for the full amount.
3. Purchase storage container equipment for $8,000 cash.
4. Hire three employees for $2,000 per month.
5. Receive cash of $12,000 in rental fees for the current month.
6. Purchase office supplies for $2,000 on account.
7. Pay employees $6,000 for the first month’s salaries.
For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction,
(1) Assets increase
(2) Stockholders’ equity increases.