Question
Sunland Company entered into these transactions during May 2017, its first month of operations. 1. Stockholders invested $38,000 in the business in exchange for common
Sunland Company entered into these transactions during May 2017, its first month of operations.
| 1. | Stockholders invested $38,000 in the business in exchange for common stock of the company | |
|---|---|---|
| 2. | Purchased computers for office use for $34,000 from Ladd on account. | |
| 3. | Paid $2,200 cash for May rent on storage space. | |
| 4. | Performed computer services worth $19,500 on account. | |
| 5. | Performed computer services for Wharton Construction Company for $6,400 cash. | |
| 6. | Paid Western States Power Co. $8,200 cash for energy usage in May. | |
| 7. | Paid Ladd for the computers purchased in (2). | |
| 8. | Incurred advertising expense for May of $3,300 on account. | |
| 9. | Received $12,700 cash from customers for contracts billed in (4). |
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders Equity in the far right column. (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 3-3 for example.)
| Assets | = | Liabilities | + | Stockholders Equity | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | + | Accounts Receivable | + | Equipment | = | Accounts Payable | + | Common Stock | + | Retained Earnings | ||||||
| Revenues | - | Expenses | ||||||||||||||
| (1) | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | $Enter a dollar amount | Select an explanation for changes to Stockholders Equity Service RevenueUtilities ExpenseIssued StockAdvertising ExpenseRent Expense | ||||||||
| (2) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Advertising ExpenseService RevenueIssued StockUtilities ExpenseRent Expense | ||||||||
| (3) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Advertising ExpenseUtilities ExpenseService RevenueRent ExpenseIssued Stock | ||||||||
| (4) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Service RevenueAdvertising ExpenseRent ExpenseUtilities ExpenseIssued Stock | ||||||||
| (5) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Rent ExpenseIssued StockAdvertising ExpenseService RevenueUtilities Expense | ||||||||
| (6) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Service RevenueIssued StockRent ExpenseUtilities ExpenseAdvertising Expense | ||||||||
| (7) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Utilities ExpenseRent ExpenseAdvertising ExpenseIssued StockService Revenue | ||||||||
| (8) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Utilities ExpenseIssued StockService RevenueRent ExpenseAdvertising Expense | ||||||||
| (9) | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Enter a dollar amount | Select an explanation for changes to Stockholders Equity Advertising ExpenseUtilities ExpenseService RevenueIssued StockRent Expense | ||||||||
| $Enter a total amount for this column | $Enter a total amount for this column | $Enter a total amount for this column | = | $Enter a total amount for this column | $Enter a total amount for this column | |||||||||||
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