Bates Company entered into the following transactions during its first year in business. Assume that all transactions involve the receipt or payment of cash.

1) Issued common stock to investors for $25,000 cash.

2) Borrowed $18,000 from the local bank.

3) Provided services to customers for $28,000.

4) Paid expenses amounting to $21,400.

5) Purchased a plot of land costing $22,000.

6) Paid a dividend of $15,000 to its stockholders.

7) Repaid $12,000 of the loan listed in item 2.

Required:

(a) Fill in the three column headings of the accounting equation in the first row of the table shown below.

(b) Show the effects of the above transactions on the accounting equation. Event number = +

1.

2.

3.

4.

5.

6.

7.

Total