1. Stockholders invested $40,000 in the business in exchange for common stock of the company 2....

 

Transcribed Image Text:

1. Stockholders invested $40,000 in the business in exchange for common stock of the company 2. Purchased computers for office use for $30,000 from Ladd on account. 3. Paid $4,000 cash for May rent on storage space. 4. Performed computer services worth $19,000 on account. 5. Performed computer services for Wharton Construction Company for $5,000 cash. 6. Paid Western States Power Co. $8,000 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,300 on account. 9. Received $12,000 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 Stockholders' Equity 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 3-3 for example.) Assets Liabilities Stockholders' Equity Accounts Accounts Common Cash Equipment Retained Earnings %3D Receivable Payable Stock Revenues Expenses (1) 40,000 40,000 Issued Stock 수 (2) 30,000 30,000 (3) (4000) 4000 Rent Expense 수 (4) 1900 (1900) Service Revenue (5) 5000 5000 Service Revenue (6) (8000) 8000 Utilities Expense (7) (30000) (30000) (8) 1300 (1300) Advertising Expense (9) 12000 (12000) 30000 = 40000 15000 7000 1300 24000 13300 1. Stockholders invested $40,000 in the business in exchange for common stock of the company 2. Purchased computers for office use for $30,000 from Ladd on account. 3. Paid $4,000 cash for May rent on storage space. 4. Performed computer services worth $19,000 on account. 5. Performed computer services for Wharton Construction Company for $5,000 cash. 6. Paid Western States Power Co. $8,000 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,300 on account. 9. Received $12,000 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 Stockholders' Equity 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 3-3 for example.) Assets Liabilities Stockholders' Equity Accounts Accounts Common Cash Equipment Retained Earnings %3D Receivable Payable Stock Revenues Expenses (1) 40,000 40,000 Issued Stock 수 (2) 30,000 30,000 (3) (4000) 4000 Rent Expense 수 (4) 1900 (1900) Service Revenue (5) 5000 5000 Service Revenue (6) (8000) 8000 Utilities Expense (7) (30000) (30000) (8) 1300 (1300) Advertising Expense (9) 12000 (12000) 30000 = 40000 15000 7000 1300 24000 13300

Answer rating: 100% (QA)

3 You have mentioned an amount in positive 4000 It should be 4000 ... View the full answer