During 2007, Walters Corp. entered into the following transactions. 1. Borrowed $80,000 by issuing bonds. 2. Paid $9,000 cash dividend to stockholders. 3. Received $17,000 cash from a customer who had previously been billed for services provided. 4. Purchased supplies on account for $3,100.

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 3-2 (page 107) as a model.

Assets = Liabilities + Stockholders’ Equity Accounts p Accounts Bonds Common Retained Cash + é aS lies =

es Receivable ne dae Payable Payable Stock Earnings