CASH ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS 1 1 1 FINANCING FINANCING OPERATING OPERATING INVESTING FINANCING 1 1 1 BONDS PAYABLE EXPENSES SERVICE REVENUE ACCOUNTS RECEIVABLE DEPRECIATION EXPENSE EQUIPMENT ACC. DEPRECIATION-EQ. TRANSACTIONS 1 Johnson Corporation issued 10,000 shares of no-par common stock receiving cash of $12 per share. 2 Johnson Corporation issued bonds with face value of $40,000 at face value. 3 Johnson Corporation earned revenue of $55,000 on account. 4 Johnson Corporation incurred expenses in the amount of $30,000 on account. 5 Johnson Corporation received cash on account of $16,500. 6 Johnson Corporation paid cash on account of $12,000. 7 Johnson Corporation purchased equipment for $13,000 paying cash. 8 Johnson recorded depreciation on the equipment in the amount of $1,300. DEBIT CREDIT CASH COMMON STOCK CASH BONDS PAYABLE A/R SVS REVENUE EXPENSESA/P CASH A/P CASH EQUIP CASH DEPR EXP ACC DEPR A/R