Ivanhoe Company, a computer services company, entered into these transactions during May 2017, its first month of operations.

1.		Stockholders invested $40,500 in the business in exchange for common stock of the company.
2.		Purchased computers for office use (recorded as Equipment) for $25,400 from Ladd on account.
3.		Paid $2,600 cash for May rent on storage space.
4.		Performed computer services worth $19,900 on account.
5.		Performed computer services for Wharton Construction Company for $5,200 cash.
6.		Paid Western States Power Co. $8,500 cash for energy usage in May.
7.		Paid Ladd for the computers purchased in (2).
8.		Incurred advertising expense for May of $1,600 on account.
9.		Received $10,100 cash from customers for contracts billed in (4).

Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand column. (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.)

		Assets					=	Liabilities	+	Stockholders Equity
		Cash	+	Accounts Receivable	+	Equipment	=	Accounts Payable	+	Common Stock	+	Retained Earnings
												Revenues	-	Expenses
(1)		$		$		$		$		$		$		$		Service RevenueRent ExpenseAdvertising ExpenseUtilities Expense
(2)																Service RevenueUtilities ExpenseRent ExpenseAdvertising Expense
(3)																Advertising ExpenseRent ExpenseService RevenueUtilities Expense
(4)																Utilities ExpenseRent ExpenseAdvertising ExpenseService Revenue
(5)																Advertising ExpenseService RevenueUtilities ExpenseRent Expense
(6)																Service RevenueRent ExpenseUtilities ExpenseAdvertising Expense
(7)																Service RevenueUtilities ExpenseRent ExpenseAdvertising Expense
(8)																Rent ExpenseAdvertising ExpenseService RevenueUtilities Expense
(9)																Rent ExpenseAdvertising ExpenseService RevenueUtilities Expense
		$		$		$	=	$		$		$		$

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT