During 2017, its first year of operations as a delivery service, Persimmon Corp. Determine effect of transactions entered into the following transactions. on basic accounting equation.

1. Issued shares of common stock to investors in exchange for $100,000 in cash. (LO 1), AP Borrowed $45,000 by issuing bonds.

Purchased delivery trucks for $60,000 cash.

Received $16,000 from customers for services performed.

Purchased supplies for $4,700 on account.

Paid rent of $5,200.

Performed services on account for $10,000.

Paid salaries of $28,000.

LCLgNiaSee o Paeidc ai dirviedesnd of $11,000 to shareholders.

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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Accounts Assets = Liabilities Stockholders' Equity Equip- Accounts Bonds Common Retained Earnings Cash + Receivable + Supplies + ment Payable + Payable + Stock + Revenues Expenses Dividends