Exercise 2 Keystone Computer Company entered into the following transactions during May 2020. 1. Purchased computers for $20,000 from Data Equipment on account. 2. Paid $3,000 cash for May rent on storage space. 3. Received $15,000 cash from customers for contracts billed in April. 4. Performed computer services for Ryan Construction Company for $2,700 and received cash. 5. Received and paid an $11,000 utility bill from Midland Power Co. for May. 6. Joe Chen, the owner, invested an additional $32,000 cash into the business. 7. Paid Data Equipment for the computers purchased in transaction #1. 8. Incurred advertising expenses for May on account of $840. Instructions Using the columns below, show the effect of the transactions on assets, liabilities, and owner's equity. If the transaction impacts owner's equity, be sure to indicate the type of owner's equity transaction. The new balances will be computed for you. Below the workpaper, the total assets and total liabilities and owner's equity are also being computed for you. Make sure that after each transaction that assets = liabilities + owner's equity. + Keystone Computer Company Assets Accounts Receivable + Supplies + Equipment 24,000 750 + 5,000 = Liabilities Accounts Payable 11,900 Owner's Equity Chen, Capital Type 37,150 + Cash 19,300 + + Bal + + 1. Bal 19,300 + 24,000 + 750 + 5,000 = 11,900 + 37,150 + 19,300 + 24,000 + 750 + 5,000 11,900 + 37,150 2. Bal * 3. Bal 19,300 + + 24,000 + 750 + 5,000 = 11,900 + 37,150 4. Bal 19,300 24,000 750 + + + 5,000 = + + 11,900 + 37,150 5. 19,300 + + 24,000 + 750 + 5,000 = 11,900 + 37,150 + 19,300 + 24,000 750 + + 5,000 11,900 + 37,150 Bal 6. Bal 7. Bal - 8. Bal 19,300 + + 24,000 750 + 11,900 + + 5,000 = 37,150 19,300 + 24,000 750 + 5,000 = 11,900 + 37,150 + Total Assets = 49,050 Total Liabiliites & Owner's Equity = 49,050