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During 2022, its first year of operations as a delivery service, Whispering Winds Corp. entered into the following transactions. 1. 2. 3. 4. 5. Issued
During 2022, its first year of operations as a delivery service, Whispering Winds Corp. entered into the following transactions. 1. 2. 3. 4. 5. Issued shares of common stock to investors in exchange for $149,000 in cash. Borrowed $54,000 by issuing bonds. Purchased delivery trucks for $64.000 cash. Received $15,000 from customers for services performed. Purchased supplies for $4,800 on account. Paid rent of $5,400. Performed services on account for $10,700. Paid salaries of $27,500. Paid a dividend of $11,700 to shareholders. 6. 7. 8. 9. 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 3-4 for example.) Assets Accounts + Receivable Cash Supplies + Equipment (1) $ 149000 $ $ TA (2) 54000 (3) -64000 (4) 15000 (5) 4800 (6) -5400 (7) 10700 DATOTO hone (8) -27500 (9) - 11700 0 109400 10700 $ 4800 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 3-4 for example.) Stockholders' Equity Retained Earnings nues Expenses Dividends $ Issued Stock 15000 Service Revenue 5400 Rent Expense 10700 Service Revenue 27500 Salaries and Wages Expense 11700 Paid Dividends 25700 32900 i $ 11700
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