TRANSACTION ANALYSIS Morgan, Inc., entered into the following transactions.

a. Sold common stock to investors in exchange for $45,000 cash.

b. Borrowed $4,000 cash from First State Bank.

c. Purchased $9,000 of supplies on credit.

d. Paid for the purchase in c.

Required:

Show the effect of each transaction using the following model.

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