Class Exercise - Chapter 2 Question 1 Effects of Transactions on the Accounting Equation: Record the transactions in December in the table as listed below. 1. Invested $50,000 in business in exchange for 5,000 shares of $10 each 2. Purchased a piece of land for $10,000 and a small building for $25,000 3. Purchased office supplies for $500 on credit 4. Paid $200 of the $500 owed for supplies 5. Earned and received a commission of $1,500 in cash 6. Earned a commission of $2,000 to be received at a later date 7. Received $1,000 from client for commission earned earlier in the month 8. Paid $1,000 to rent equipment for office 9. Paid $400 in wages to part-time helper 10. Record utilities expense of $500 incurred in December but not yet paid 11. Declared and paid dividend of $600 Assets Accounts Receivable Supplies Liab. Accounts Payable Shareholders' Equity Share Retained Capital Earnings Cash Land Building 1 2 3 4 5 6 7 8 9 101 11 bal