Exercise 1 Selected transactions for Lush Lawn Care Company are as follows: 1. Sold common stock for cash to start the business. 2. Paid monthly rent. 3. Purchased equipment on account. 4. Billed customers for services performed. 5. Declared and paid dividends to stockholders. 6. Received cash from customers billed in transaction #4. 7. Incurred advertising expenses on account. 8. Purchased additional equipment for cash. 9. Received cash from customers when service was performed. Instructions Indicate the effect of the above transactions on assets, liabilities, and liabilities and stockholders' equity by entering "+", "-" or "+ and -" in the workpaper below. If the transaction affects retained earnings, indicate the type of transaction (Rev for revenue; Exp for Expense; Div for Dividend) in the Type column. Exercise 1 Workpaper + Assets Accounts Receivable Liabilities Accounts Payable Stockholders' Equity Common Retained Stock Earnings Trans Cash Equipment + Type Trans 1. 1. 2. 3. 4. 5. 2. 3. 4. 5. 6. 7. 7. 8. 8. 9. 9