The following cash transactions took place during July 2010, the first month of business for Stay Bright Cleaning Supplies comma Inc.

a. Bill Lunden started a business, Stay Bright Cleaning Supplies, Inc., by contributing $7,500 cash. He received common stock in exchange. b. The company earned and collected cash revenue of $2,500. c. The company paid expenses of $1,250 in cash. d. The company declared and paid dividends of S500. e. On July 31, the company borrowed $4,375 from the local bank by signing a three-year note. Requirements 1. Show how each transaction affects the accounting equation. 2. Prepare the income statement, statement of changes in shareholders' equity, and statement of cash flows for the month of July and the balance sheet at July 31, 2010. Requirement 1. Enter the transactions into the accounting equation. Begin by entering transaction a. Then, enter each transaction in the order they occurred. (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Shareholders' Equity Assets Liabilities Contributed Capital Retained Earnings Account Account Account Account a. Cash b. Cash C. d. Choose from any list or enter any number in the input fields and then continue to the next