Ana Urbin established an insurance agency on March 1 of the current year and completed the following transactions during March:

a. Opened a business bank account with a deposit of \(\$ 40,000\) in exchange for capital stock.

b. Purchased supplies on account, \(\$ 1,500\).

c. Paid creditors on account, \(\$ 800\).

d. Received cash from fees earned on insurance commissions, \(\$ 7,250\).

e. Paid rent on office and equipment for the month, \(\$ 2,500\).

f. Paid automobile expenses for month, \(\$ 1,000\), and miscellaneous expenses, \(\$ 400\).

g. Paid office salaries, \(\$ 2,000\).

h. Determined that the cost of supplies on hand was \(\$ 400\); therefore, the cost of supplies used was \(\$ 1,100\).

i. Billed insurance companies for sales commissions earned, \(\$ 9,350\).

j. Paid dividends of \(\$ 3,000\).

{Instructions}

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

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Assets = Liabilities + Accounts Accounts Capital Cash + Receivable +Supplies Payable + Stock Stockholders' Equity Fees Rent Salaries Supplies Auto Misc. Dividends + Earned Expense Expense Expense Expense - Expense Briefly explain why the stockholders' investment and revenues increased stock- holders' equity, while dividends and expenses decreased stockholders' equity.