Describe the effect of each transaction on assets, liabilities, and stockholders equity. For example, the first answer is: (1) Increase in assets and increase in stockholders equity. E3-2B Wagner Company entered into these transactions during May 2012. 1. Purchased computers for office use for $35,000 from Dell on account. 2. Paid $4,000 cash for May rent on storage space. 3. Received $12,000 cash from customers for contracts billed in April. 4. Provided computer services to Carlson Construction Company for $8,000 cash. 5. Paid United States Power Co. $11,000 cash for energy usage in May. 6. Stockholders invested an additional $50,000 in the business in exchange for com- mon stock of the company. 7. Paid Dell for the computers purchased in (1). 8. Incurred advertising expense for May of $1,000 on account. Instructions Using the following tabular analysis, show the effect of each transaction on the account- ing equation. Put explanations for changes to Stockholders Equity in the right-hand mar- gin. Use Illustration 3-3 (page 110) in the chapter as a model. Analyze the effect of transactions. (SO 1), C Analyze the effect of transactions on assets, liabilities, and stockholders equity. (SO 1), AP Assets Liabilities Stockholders Equity Accounts Equip- Accounts Bonds Common Retained Earnings Cash Receivable Supplies ment Payable Payable Stock Revenues Expenses Dividends Assets Liabilities Stockholders Equity Accounts Accounts Common Retained Earnings Cash Receivable Equipment Payable Stock Revenues Expenses Dividends