Rockford Enterprises had the following selected transactions.

1. Kris Rockford invested $5,000 cash in the business in exchange for common stock.

2. Paid office rent of $1,100.

3. Performed consulting services and billed a client $4,700.

4. Declared and paid a $700 cash dividend.

Instructions

(a) Indicate the effect each transaction has on the accounting equation (Assets = Liabilities + Stockholders’ Equity), using plus and minus signs.

(b) Journalize each transaction. (Omit explanations.)