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Crane Company decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the
Crane Company decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. (1) Crane Company invests $28,000 cash in exchang for common stock on June 1 . (2) Purchased equipment for $3,900 paying $1,500 in cash and the remainder due in 30 days. (3) Purchased supplies fo $1,300cash. (4) Received a bill from Campus News for $160 for advertising in the campus newspaper. (5) Cash receipts from customers for pizza sales amounted to $2,200. (6) Paid salaries of $270 to student workers. (7) Billed the Tiger Football Team $250 for pizzas ordered. (8) Paid $160 to Campus News for advertising that was previously billed in Transaction 4. (9) Crane Company paid dividends of $1,800. (10) Incurred utility expenses for the month on account, $60. Record each transaction by increasing (+) or decreasing () the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders' equity. (If Balance is negative then enter either a - sign eg- 15,000 or in parenthesis eg. (15,000). Enter all transoction amounts as positive and select the appropriate sign fram the drop down. Leave the field blank if not applicable)
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