Page 1 Bucks County Community College Acct-105-B01 Financial Accounting Fall 2020 - Test 1 Professor: Frank Chominski Problem 1 Chapter 1 Akulava Case decides to open a cleaning and laundry service near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders' equity June Transactions (1) Issued stock in exchange for $20,000 cash on June 1. (2) Purchased equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days. (3) Purchased supplies for $1.200 cash (4) Received a bill from College News for $300 for advertising in the campus newspaper (5) Cash receipts from customers for cleaning and laundry amounted to $2,400 (6) Paid salaries of $600 to student workers 6) Billed the Lion Soccer Team $450 for cleaning and laundry services (8) Paid $300 to College News for advertising that was previously billed in Transaction 4. (9) Paid dividends of $1,200 (10) Incurred utility expenses for month on account, $500. Trans Accounts Accounts Common Retained action Cash + Receivable + Supplies - Equipment = Payable + Stock + Earnings Balance (2) Balance (3) Balance (4) Balance (5) Balance Balance (7) Balance (8) Balance