Sheridan Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders...

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Sheridan Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $35,000 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $32,900 from Ladd on account. 3. Paid $3,600 cash for May rent on storage space. 4. Performed computer services worth $18,100 on account. 5. Performed computer services for Wharton Construction Company for $5,900 cash. 6. Paid Western States Power Co. $7,100 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,800 on account. 9. Received $11,900 cash from customers for contracts billed in (4). Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the far right column. (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 3-4 for example.) Sheridan Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $35,000 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $32,900 from Ladd on account. 3. Paid $3,600 cash for May rent on storage space. 4. Performed computer services worth $18,100 on account. 5. Performed computer services for Wharton Construction Company for $5,900 cash. 6. Paid Western States Power Co. $7,100 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,800 on account. 9. Received $11,900 cash from customers for contracts billed in (4). Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the far right column. (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 3-4 for example.)

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1 Stockholders invested 35000 for common stock Assets 35000 Cash Equity 35000 Common Stock Explanati... View the full answer