Amanda Webb opened a home health care business under the name Home Care Inc. During its first month of operations, the business had the following transactions:
a. Sold common stock to Ms. Webb and other stockholders in exchange for $30,000 cash
b. Paid $18,500 cash for a parcel of land on which the business will eventually build an office building
c. Purchased supplies for $2,750 on credit
d. Used the supplies purchased in part (c).
e. Paid rent for the month on office space and equipment, $800 cash
f. Performed services for clients in exchange for $3,910 cash
g. Paid salaries for the month, $1,100
h. Purchased and used $650 of supplies
i. Paid $1,900 on account for supplies purchased in transaction c
j. Performed services for clients on credit in the amount of $1,050
k. Paid a $600 dividend to stockholders
Required:
Prepare an analysis of the effects of these transactions on the accounting equation of the business.
Use the format below.

Transcribed Image Text:

sets Lilities Stockholders' Equity Contributed Retained Capital Earnings