Manning Company entered into these transactions during May 2014, its first month of operations. 1. Stockholders invested
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Question:
Manning Company entered into these transactions during May 2014, its first month of operations.
1. | Stockholders invested $49,900 in the business in exchange for common stock of the company | |
2. | Purchased computers for office use for $33,230 from Dell on the account. | |
3. | Paid $4,350 cash for May rent on storage space. | |
4. | Performed computer services worth $16,790 on the account. | |
5. | Performed computer services to Lawton Construction Company for $3,340 cash. | |
6. | Paid Southern States Power Co. $7,700 cash for energy usage in May. | |
7. | Paid Dell for the computers purchased in (2). | |
8. | Incurred advertising expense for May of $1,870 on the account. | |
9. | Received $10,300 cash from customers for contracts billed in (4). |
Using the following tabular analysis, show the effect of each transaction on the 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.)
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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