Question
During 2017, its first year of operations as a delivery service, Flint Corporation entered into the following transactions. 1. Issued shares of common stock to
During 2017, its first year of operations as a delivery service, Flint Corporation entered into the following transactions.
1. | Issued shares of common stock to investors in exchange for $107,000 in cash. | |
2. | Borrowed $52,000 by issuing bonds. | |
3. | Purchased delivery trucks for $67,000 cash. | |
4. | Received $14,000 from customers for services performed. | |
5. | Purchased supplies for $5,700 on account. | |
6. | Paid rent of $4,400. | |
7. | Performed services on account for $10,500. | |
8. | Paid salaries of $28,800. | |
9. | Paid a dividend of $10,400 to shareholders. |
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders Equity in the far right column. (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.)
Cash + Accounts Receivable + Supplies + Equipment = = Accounts Payable + Bonds Payable + Common Stock Retained Earnings Revenucs - Expenses - Dividends in niin = XXXXXX intindi Oll0OONI Ob00Step by Step Solution
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