3-46 CHAPTER 3 The Accounting Information System 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 3.4 as a model. Assets Accounts Cash + Receivable + Supplies + Liabilities Accounts Bonds Payable + Payable + Equip- Stockholders' Equity Retained Earnings + Revenues Expenses Dividends Common Stock ment Analytransactions and computer net income + + Cash 1 +$20,000 2 -1,000 3. -750 +4,100 5. -1.500 6. -2.000 7. -800 8. +450 9. -3,000 10 E3.4 (LO 1), AP A tabular analysis of the transactions made during August 2022 by Wolfe Company during its first month of operations is shown as follows. Each increase and decrease in stockholders' equity is explained Assets Liabilities + Stockholders' Equity Accounts Common Retained Earnings A/R + Supp. + Equip - Payable Stock + Rev. Exp. . Div. +$20,000 +$5,000 +S4,000 +$750 +55,400 +$9,500 Serv. Rev. - 1,500 -$2,000 -450 -$ 800 Rent Exp +300 -3,000 -300 Salar. Exp. Util. Exp. Instructions a. Describe each transaction b. Determine how much stockholders' equity increased for the month. c. Compute the net income for the month. 3-46 CHAPTER 3 The Accounting Information System 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 3.4 as a model. Assets Accounts Cash + Receivable + Supplies + Liabilities Accounts Bonds Payable + Payable + Equip- Stockholders' Equity Retained Earnings + Revenues Expenses Dividends Common Stock ment Analytransactions and computer net income + + Cash 1 +$20,000 2 -1,000 3. -750 +4,100 5. -1.500 6. -2.000 7. -800 8. +450 9. -3,000 10 E3.4 (LO 1), AP A tabular analysis of the transactions made during August 2022 by Wolfe Company during its first month of operations is shown as follows. Each increase and decrease in stockholders' equity is explained Assets Liabilities + Stockholders' Equity Accounts Common Retained Earnings A/R + Supp. + Equip - Payable Stock + Rev. Exp. . Div. +$20,000 +$5,000 +S4,000 +$750 +55,400 +$9,500 Serv. Rev. - 1,500 -$2,000 -450 -$ 800 Rent Exp +300 -3,000 -300 Salar. Exp. Util. Exp. Instructions a. Describe each transaction b. Determine how much stockholders' equity increased for the month. c. Compute the net income for the month
