During 2014, its first year of operations as a delivery service, Persinger Corp.

entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $100,000 in cash. 2. Borrowed $45,000 by issuing bonds. 3. Purchased delivery trucks for $60,000 cash. 4. Received $16,000 from customers for services performed. 5. Purchased supplies for $4,700 on account. 6. Paid rent of $5,200. 7. Performed services on account for $10,000. 8. Paid salaries of $28,000. 9. Paid a dividend 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 110) as a model.

Assets 5 Liabilities 1 Stockholders’ Equity Accounts Equip- Accounts Bonds Common Retained Earnings Cash 1 Receivable 1 Supplies 1 ment 5 Payable 1 Payable 1 Stock 1 Revenues 2 Expenses 2 Dividends AppendixLO1