Exercise 3-2

Manning Company entered into these transactions during May 2014, its first month of operations.

1.		Stockholders invested $40,000 in the business in exchange for common stock of the company
2.		Purchased computers for office use for $30,000 from Dell on account.
3.		Paid $4,000 cash for May rent on storage space.
4.		Performed computer services worth $19,000 on account.
5.		Performed computer services to Lawton Construction Company for $5,000 cash.
6.		Paid Southern States Power Co. $8,000 cash for energy usage in May.
7.		Paid Dell for the computers purchased in (2).
8.		Incurred advertising expense for May of $1,300 on account.
9.		Received $12,000 cash from customers for contracts billed in (4).

Using the following tabular analysis, show the effect of each transaction on the accounting equation. (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 3-3 for example.)

Assets

=

Liabilities

+

Stockholders