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Transaction Analysis Amanda Webb opened a home health care business under the name Home Care, Inc. During its first month of operations, the business had

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Transaction Analysis Amanda Webb opened a home health care business under the name Home Care, Inc. During its first month of operations, the business had the following transactions: a. Sold common stock to Ms. Webb and other stockholders in exchange for $30,000 cash b. Paid $18,500 cash for a parcel of land on which the business will eventually build an office building c. Purchased supplies for $2,750 on credit d. Used the supplies purchased in part (c). e. Paid rent for the month on office space and equipment, $800 cash f. Performed services for clients in exchange for $3,910 cash Q. Pald salaries for the month, $1,100 h. Purchased and used $650 of supplies i. Paid $1,900 on account for supplies purchased in transactionc 1. Performed services for clients on credit in the amount of $1,050 k. Paid a $600 dividend to stockholders Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below. If an amount box does not require an entry, leave the cel blank or enter zero Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (e. Asset, Liability), enter"O since the net effect on the item is zero. 11. Purchased and used $650 or suppies I Paid $1,900 on account for supplies purchased in transactionc j. Performed services for clients on credit in the amount of $1,050 k. Paid a $600 dividend to stockholders Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease th Liabilities + Stockholders' Equity Contributed Retained Capital Earnings 30,000 30,000 18,500 E -18,500 2,750 -2,750 -2,750 800 -800 3,910 1100 100 -650 650 -1,900 -1,900 1,050 1,050 -600 W -600

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