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During 2017, its first year of operations as a delivery service, Sarasota Corp. entered into the following transactions. 1. Issued shares of common stock to
During 2017, its first year of operations as a delivery service, Sarasota Corp. entered into the following transactions.
1. | Issued shares of common stock to investors in exchange for $103,000 in cash. | |
2. | Borrowed $45,000 by issuing bonds. | |
3. | Purchased delivery trucks for $61,000 cash. | |
4. | Received $18,000 from customers for services performed. | |
5. | Purchased supplies for $4,900 on account. | |
6. | Paid rent of $5,400. | |
7. | Performed services on account for $12,000. | |
8. | Paid salaries of $26,100. | |
9. | Paid a dividend of $11,200 to shareholders. |
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes Liabilities or Stockholders' Equity, place a negative sign (or parentheses) r right column. (If a transaction causes a decrease in Assets, front of the amount entered for the particular Asset, Liability or Equity item that was reduced, see Illustration 3-3 for example.) Stockholders' Equity in the f Liabilities Stockholders' Equity Assets = Accounts Payable Bonds Payable Accounts Receivable Supplies Cash Equipment Common Stock + Retained Earnings Dividends Revenues Expenses (1 S (2) (3) (4' (5) (6) (7) (8) (9 click if you would like to Show Work for this question: Open Show ork
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