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I'm confused on part A and we are supposed to use the equation assets=liabilities + stockholders equity/contributed capital + retail earnings OBJECTI SHOW ME Exercise
I'm confused on part A and we are supposed to use the equation
assets=liabilities + stockholders equity/contributed capital + retail earnings
OBJECTI SHOW ME Exercise 2-40 Transaction Analysis Amanda Webb opened a home health care business under the name Home Care Inc. During its first month of operations, the business had the following transactions: a. Issued common stock to Ms. Webb and other stockholders in exchange for $30,000 cash. b. Paid $18,500 cash for a parcel of land on which the business will eventually build an office building c. Purchased supplies for $2,750 on credit. d. Used the supplies purchased in Transaction c. e. Paid rent for the month on office space and equipment, $800 cash. f. Performed services for clients in exchange for $3,910 cash. g. Paid salaries for the month, $1,100. h. Paid $650 cash for advertising in the current month. i. Paid $1,900 on account for supplies purchased in Transaction c. j. Performed services for clients on credit in the amount of $1,050. k. Paid a $600 dividend to stockholders. Required: Prepare an analysis of the effects of these transactions on the accounting equation of the busi- ness. Use the format belowStep by Step Solution
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