Question: How do I determine the amounts for assets, liabilities and stockholders equity? Transactions made by Pharoah Company for the month of March are shown below.

How do I determine the amounts for assets, liabilities and stockholders equity?

How do I determine the amounts for assets, liabilities and stockholders equity?

Transactions made by Pharoah Company for the month of March are shown below. 1 The company performed $20,010 of services for customers on account. 2 The company received $20,010 in cash from customers who had been billed for services [in transaction (1)]. 3. The company received a bill for $3,200 of advertising but will not pay it until a later date. 4 Pharoah Company paid a cash dividend of $2,130. Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable = Accounts Payable + Common Stock + Retained Earnings Revenues - Expenses - Dividends (1) $ $ $ $ $ $ $ (2) (3) (4)

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