Transactions made by Virmari & Co., a public accounting fi rm, for the month of August are shown below. Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting equation, similar to that shown in Illustration 1-9.
1. Stockholders purchased shares of stock for $25,000 cash.
2. The company purchased $7,000 of office equipment on credit.
3. The company received $8,000 cash in exchange for services performed.
4. The company paid $850 for this month’s rent.
5. The company paid a dividend of $1,000 in cash to stockholders.

Data from Illustration 1-9

Transcribed Image Text:

Trans- action Cash (1) +$15,000 (2) -7,000 (3) (4) (5) (6) (7) (8) (9) (10) +1,200 +1,500 - 1,700 -250 +600 -1,300 $ 8,050 + Assets Accounts Receivable +$2,000 - 600 + Supplies + Equipment = +$1,600 +$7,000 $1,400 $1,600 + $7,000 $18,050 = Liabilities + || Accounts Common Payable Stock + $15,000 +$1,600 +250 - 250 Stockholders' Equity + Retained Earnings Exp. - Div. Rev. +$1,200 +3,500 - $18,050 -$250 -600 -900 -200 $1,600+ $15,000 + $4,700 $1,950 $1,300 Issued Stock Service Revenue Advert. Expense Service Revenue Rent Expense Sal./Wages Exp. Utilities Expense -$1,300 Dividends