Brady Company entered into these transactions during May 2017, its first month of operations.

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

Purchased computers for office use for $30,000 from Ladd on account.
Paid $4,000 cash for May rent on storage space.
Performed computer services worth $19,000 on account.
Performed computer services for Wharton Construction Company for $5,000 cash.
Paid Western States Power Co. $8,000 cash for energy usage in May.
Paid Ladd for the computers purchased in (2).
Incurred advertising expense for May of $1,300 on account.
9, Received $12,000 cash from customers for contracts billed in (4).
SeBCeSsyeT S Instructions Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the right-hand margin.
Use Illustration 3-3 (page 99) as a model.

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Assets Accounts Cash + Receivable = Liabilities Accounts Common Stockholders' Equity Retained Earnings Equipment = Payable Stock + Revenues - Expenses - Dividends