The Effect of Business Transactions on the Basic Accounting Equation AIS - Accounting les Information L system es These are the business transactions for Senata Corporation during its first month: 1. Investment of cash by stockholders $500 2. Purchase of equipment for cash $250 USD bank for 3- Note issued in exchange of cash $200 ethiny Szoo.ro kunk 4- Services rendered $600 of which $400 were collected in cash 5. Receipt of cash in advance from customers $60 6. Payment of the month rent $50 7. Purchase of six month insurance policy $30 8- Purchase of supplies on credit $90 9. Payment of dividends $25 10-Payment of wages $300 Accounting Equation Record the effect of transaction Assets Liabilities + Stockholders' Equity Cash Acc Supplies Prepaid Equp. Acc. Payable Notes Unearned + Com Retained Earnings Receiv. Insura, Payable Revenue Stock Rev. - Exp. ORG -Divid. 1 500 +500 Bus soo 500 12 (250) s 250 2.50 500 (3 200 4200 200 B/s 450 4 400 200+ COD | B/s 850 200 500 500 16/ 3910 Te/s 860 500 Accounting 210 Cash " Supplies / The Effect of Business Transactions on the Basic Accounting Equation (30) (30) B/s 830 +10 B/ 140 (25) B 715 10 (206) les 415 (300)