The Creative Frames Shop, Inc. was started by Rosa Partridge in a small shopping cen- ter....

 

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The Creative Frames Shop, Inc. was started by Rosa Partridge in a small shopping cen- ter. In the first weeks of operation, she completed the following transactions: a. Deposited $21,000 in cash in the name of the company, in exchange for 2,100 shares of $10 par value stock of the corporation. b. Paid the current month's rent, $1,500. c. Purchased store equipment on credit, $10,800. d. Purchased framing supplies for cash, $5,100. e. Received framing revenues, $2,400. f. Billed customers for services, $2,100. g. Paid utility expense, $750. h. Received payment from customers in transaction f, $600. i. Made payment on store equipment purchased in transaction c, $5,400. j. Declared and paid dividends of $1,200. Required 1. Arrange the following asset, liability, and stockholders' equity accounts in an equation : Cash, Accounts Receivable, Framing Supplies, Store Equipment, Accounts Payable, Common Stock, and Retained Earnings. 2. Show by addition and subtraction, the effects of the transactions on the accounting equation. Show new balances after each transaction, and identify each stockholders' equity transaction by type. The Creative Frames Shop, Inc. was started by Rosa Partridge in a small shopping cen- ter. In the first weeks of operation, she completed the following transactions: a. Deposited $21,000 in cash in the name of the company, in exchange for 2,100 shares of $10 par value stock of the corporation. b. Paid the current month's rent, $1,500. c. Purchased store equipment on credit, $10,800. d. Purchased framing supplies for cash, $5,100. e. Received framing revenues, $2,400. f. Billed customers for services, $2,100. g. Paid utility expense, $750. h. Received payment from customers in transaction f, $600. i. Made payment on store equipment purchased in transaction c, $5,400. j. Declared and paid dividends of $1,200. Required 1. Arrange the following asset, liability, and stockholders' equity accounts in an equation : Cash, Accounts Receivable, Framing Supplies, Store Equipment, Accounts Payable, Common Stock, and Retained Earnings. 2. Show by addition and subtraction, the effects of the transactions on the accounting equation. Show new balances after each transaction, and identify each stockholders' equity transaction by type.

Answer rating: 100% (QA)

1 Accounting Equation Assets Liabilities Stockholders Equity The accounts given in the equation are ... View the full answer