Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During 2022, its first year of operations as a delivery service, Whispering Winds Corp. entered into the following transactions. 1. 1. 2. 3. 4. 5.
During 2022, its first year of operations as a delivery service, Whispering Winds Corp. entered into the following transactions. 1. 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.) Stockholders' Equity Retained Earnings nues Expenses Dividends $ $ Issued Stock 15000 Service Revenue Rent Expense 10700 Service Revenue Salaries and Wages Expense Paid Dividends 25700 $ 32900 GA 11700
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started