Recording Transactions in Accounting Equation (no debits or credits yet) Question 2 Instructions Describe the effect of each transaction on assets, liabilities, and stockholders' equity. For example, the first answer is (1) Increase in assets and increase in stockholders' equity. 1. Issued common stock to investors in exchange for cash received from investors. 2. Paid monthly rent. 3. Received cash from customers when service was performed. 4. Billed customers for services performed. 5. Paid dividend to stockholders. 6. Incurred advertising expense on account. 7. Received cash from customers billed in (4). 8. Purchased additional equipment for cash. 9. Purchased equipment on account. Assets Increase = Liabilities + Stockholders' Equity Increase

Recording Transactoons in Accounting Equation (no debits or credits yet) Question 2 Instructions Describe the effect of each transaction on assets, liabilies, and stockholders' equity For example, the first answer is (1) Increase in assets and increase in stockholders' equity. ACT 210: Chapter 2 You Do Recording Transactions in Accounting Equation (no debits or credits yet) Question 2 Instructions Describe the effect of each transaction on assets, liabilities, and stockholders' equity. For example, the first answer is (1) Increase in assets and increase in stockholders' equity