Award: $5\mathrm{.}00$ points

Exercise $2-3($Static$)$ Analyze the impact of transactions on the accounting equation $($LO$2-2)$

Green Wave Company plans to own and operate a storage rental facility.

Required:

For the first month of operations, the company had the following transactions. For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, $(1)$ assets increase and $(2)$ stockholders' equity increases.

$\backslash$table$[[$Transactions$,$Dual Effect$],[1.$ 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.,$]]$

References

Worksheet

Difficulty: $1$ Easy

Exercise $2-3($Static$)$ Analyze the impact of transactions on the accounting equation $($LO$2-2)$

Learning Objective: $02-02$

Analyze the impact of external transactions on the accounting equation.