Total each asset, liability, and shareholders’ equity account in E4–2, and prepare an income statement, a statement of shareholders’ equity, a balance sheet, and a statement of cash flows. Assume that the current year (i.e., 2017) is the X Company’s first year of operations and the year end is December 31.

Data From 

On a separate piece of paper, complete the following chart to show the effect of each transaction on the accounting equation.

Transaction                                                             Assets = Liabilities + Shareholders’ Equity
1. Owners contributed $30,000 cash.
2. Purchased land for $20,000 cash.
3. Borrowed $9,000 cash from bank.
4. Provided services for $8,000 on account.
5. Paid $5,500 cash for expenses.
6. Paid $500 cash dividend to owners.