Question
Hatch Inc. has the following transactions during March 2027: Transaction 1: Mar. 1 The business received $10,000 cash and issued common stock to stockholders. Transaction
Hatch Inc. has the following transactions during March 2027:
Transaction 1: Mar. 1 The business received $10,000 cash and issued common stock to stockholders.
Transaction 2: Mar. 2 Paid the rent of March 2027: $500.
Transaction 3: Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $6,000.
Transaction 4: Mar. 4 Purchased office supplies for $550 cash.
Transaction 5: Mar. 5 Billed a client for $13,000 for goods sold on 3/5; the cost of goods sold is $8,000
Transaction 6: Mar. 6 Received cash of $7,000 on account for the goods sold and recorded in the previous period (February 2027).
Assume there is no tax and the firm uses PERPETUAL inventory system.
Notes: the firm prepares MONTHLY financial statement.
Pick numbers for the answers below.
Transactions that change equity of the firm are?
Transaction(s) that affect(s) ONLY asset side of the balance is/are sheet is(are)?
Transaction(s) that reduce(s) equity is/are?
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