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The transactions listed below apply to Bates Company for its first year in business. Assume that all transactions involve the receipt or payment of cash.
The transactions listed below apply to Bates Company for its first year in business. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1: 1. Issued common stock to investors for $25,000 cash 2. Borrowed $18,000 from the local bank 3. Provided services to customers for $28,000 cash 4. Paid expenses amounting to $21,400 5. Purchased a plot of land for $22,000 cash 6. Paid a dividend of $15,000 to its stockholders 7. Repaid $12,000 of the loan listed in number 2 Required: o. Fill in the headings to the accounting equation shown below. b. Show the effects of the above transactions on the accounting equation. Note: Enter any decreases to occount balences and cash outflows with a minus sign. Leave cells blank if no Input is needed
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