Question
Nancy Tercek started a delivery service, Swifty Corporation, on June 1, 2022. The following transactions occurred during the month of June. June 1 Stockholders invested
Nancy Tercek started a delivery service, Swifty Corporation, on June 1, 2022. The following transactions occurred during the month of June.
June 1 | Stockholders invested $ 24,800 cash in the business in exchange for common stock. | |
2 | Purchased a used van for deliveries for $ 14,500. Nancy paid $ 3,900 cash and signed a note payable for the remaining balance. | |
3 | Paid $ 600 for office rent for the month. | |
5 | Performed $ 5,100 of services on account. | |
9 | Declared and paid $ 200 in cash dividends. | |
12 | Purchased supplies for $ 100 on account. | |
15 | Received a cash payment of $ 1,300 for services performed on June 5. | |
17 | Purchased gasoline for $ 300 on account. | |
20 | Received $ 1,700 cash for services performed. | |
23 | Made a cash payment of $ 400 on the note payable. | |
26 | Paid $ 150 for utilities. | |
29 | Paid for the gasoline purchased on account on June 17. | |
30 | Paid $ 2,660 for employee salaries. |
Show the effects of the previous transactions on the accounting equation using the following format. (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 1-8 for example.)
Assets | = | Liabilities | + | Stockholders' Equity | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retained Earnings | ||||||||||||||||||||
Date | Cash | + | Accounts Receivable | + | Supplies | + | Equipment | = | Notes Payable | + | Accounts Payable | + | Common Stock | + | Revenues | - | Expenses | - | Dividends |
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