Q$2$

E$3-3$ During $2014,$ its first year of operations as a delivery service, Persinger Corp.

entered into the following transactions.

Issued shares of common stock to investors in exchange for $$100,000$ in cash.

Borrowed $$45,000$ by issuing bonds.

Purchased delivery trucks for $$60,000$ cash.

Received $$16,000$ from customers for services performed.

Purchased supplies for $$4,700$ on account.

Paid rent of $$5,200.$

Performed services on account for $$10,000.$

Paid salaries of $$28,000.$

Paid a dividend of $$11,000$ to shareholders.

Instructions

Using the following tabular analysis, show the effect of each transaction on the accounting

equation. Put explanations for changes to Stockholders' Equity in the right$-$hand margin.

Use Illustration $3-3($page $110)$ as a model.

Instructions

Prepare an income statement and a retained earnings statement for August and a classi$-$

fied balance sheet at August $31,2014.$