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On April 1, Kingbird, Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,600 cash in the company in exchange for
On April 1, Kingbird, Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,600 cash in the company in exchange for common stock. 2. Paid $780 cash for April office rent. 3. Purchased office equipment for $3,870 cash. 4. Purchased $250 of advertising in the Chicago Tribune, on account. 5. Paid $570 cash for office supplies. 6. Performed services worth $11,400. Cash of $2,200 is received from customers, and the balance of $9,200 is billed to customers on account. 7. Paid $280 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,310. 10. Received $9,200 in cash from customers billed previously in transaction (6). Prepare a tabular analysis of the above transactions. Include margin explanations for any changes in Retained Earnings. (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 3-4 for example.) Assets Cash + Accounts Receivable + Supplies + Equipment (1) $ $ $ $ (2) (3) (4) (5) (6) (7) (8) (9) (10) $ $ $ $
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