Question
1. During 2022, Splish Brothers Corp. entered into the following transactions. 1. Borrowed $56,400 by issuing a note. 2. Paid $8,460 cash dividend to stockholders.
1. During 2022, Splish Brothers Corp. entered into the following transactions.
1. | Borrowed $56,400 by issuing a note. | |
2. | Paid $8,460 cash dividend to stockholders. | |
3. | Received $12,220 cash from a previously billed customer for services performed. | |
4. | Purchased supplies on account for $2,914. |
Using the following tabular analysis, show the effect of each transaction on the accounting equation. For retained earnings, use separate columns for revenues, expenses, and dividends if necessary. (If a transaction results in a decrease in Assets, Liabilities or Stockholder's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets | = | Liabilities | + | Stockholders Equity | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retained Earnings | |||||||||||||||||||
Cash | + | Accounts Receivable | + | Supplies | = | Accounts Payable | + | Notes Payable | + | Common Stock | + | Revenues | - | Expenses | - | Dividends | |||
1. | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||||||||
2. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | Paid div | |||||||||
3. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
4. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount |
2.
Transactions made by Larkspur Co. for the month of March are shown below.
1. | The company performed $16,400 of services for customers on account. | |
2. | The company received $16,400 in cash from customers who had been billed for services [in transaction (1)]. | |
3. | The company received a bill for $1,476 of advertising but will not pay it until a later date. | |
4. | Larkspur Co. paid a cash dividend of $2,460. |
Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation. (If a transaction results in a decrease in Assets, Liabilities or Stockholder's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets | = | Liabilities | + | Stockholders Equity | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retained Earnings | ||||||||||||||
Cash | + | Accounts Receivable | = | Accounts Payable | + | Common Stock | + | Revenues | - | Expenses | - | Dividends | ||
1. | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||||||
2. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||||
3. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||||
4. | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount |
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