TRANSACTION ANALYSIS 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 $25,000 cash

b. Paid $15,000 cash for a parcel of land on which the business will eventually build an office building

c. Purchased supplies for $2,900 on credit

d. Paid rent for the month on office space and equipment, $600 cash

e. Performed services for clients in exchange for $3,400

f. Paid salaries for the month, $1,200 g. Purchased and used $950 of supplies h. Paid $2,100 on account for supplies purchased in transaction c i. Performed services for clients on credit in the amount of $770 j. Paid a $500 dividend to stockholders Required:

Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below.

Assets ¼ Liabilities þ Stockholders’ Equity Contributed Capital Retained Earnings Exercise