Question
During 2017, Blossom Company entered into the following transactions. 1. Purchased equipment for $276,320 cash. 2. Issued common stock to investors for $136,480 cash. 3.
During 2017, Blossom Company entered into the following transactions.
1. | Purchased equipment for $276,320 cash. | |
2. | Issued common stock to investors for $136,480 cash. | |
3. | Purchased inventory of $68,850 on account. |
Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)
Assets | = | Liabilities | + | Stockholders Equity | ||||||||
Cash | + | Inventory | + | Equipment | = | Accounts Payable | + | Common Stock | + | Retained Earning |
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