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During 2022, its first year of operations as a delivery service, Larkspur Corp. entered into the following transactions. 1. Issued shares of common stock to
During 2022, its first year of operations as a delivery service, Larkspur Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $104,000 in cash. 2. Borrowed $46,800 by issuing a note. 3. Purchased delivery trucks for $62,400 cash. 4. Performed services for customers for $16,640 cash. 5. Purchased supplies for $4,888 on account. 6. Paid rent of $5,408. 7. Performed services on account for $10,400. 8. Paid salaries of $29,120. 9. Paid a dividend of $11,440 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in 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.) During 2022, its first year of operations as a delivery service, Larkspur Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $104,000 in cash. 2. Borrowed $46,800 by issuing a note. 3. Purchased delivery trucks for $62,400 cash. 4. Performed services for customers for $16,640 cash. 5. Purchased supplies for $4,888 on account. 6. Paid rent of $5,408. 7. Performed services on account for $10,400. 8. Paid salaries of $29,120. 9. Paid a dividend of $11,440 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in 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.)
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