Indicate the effects of the transactions below on the balance sheet equation using the following format:

(1) Shares of common stock are issued to stockholders for cash, $50,000.
(2) Equipment is purchased on an installment contract for $18,000; terms are $3,000 payable immediately and the balance in three quarterly installments.
(3) A check for $900 is issued to Roger White to reimburse him for costs incurred in organizing and promoting the corporation.
(4) A check for $600 is issued for 3 months’ rent in advance for office space.

(5) Office equipment is purchased for $950. A down payment of $250 is made, with the balance payable in 30 days.

(6) A patent on a machine process is purchased for $30,000 cash.

(7) $275 is paid to Express Transfer Company for delivering the equipment purchased in (2).

(8) The first payment on the equipment installment contract is made.

(9) Supplies are purchased on account, $800.

Transcribed Image Text:

Transaction Number Assets (1) +$50,000 $50,000 Subtotal == Liabilities + Owners' Equity 0 +$50,000 0 $50,000