Transaction Analysis

Galle Inc. entered into the following transactions during January.

1. Borrowed $50,000 from First Street Bank by signing a note payable.
2. Purchased $25,000 of equipment for cash.
3. Paid $2,250 to landlord for rent for January.
4. Performed services for customers on account, $10,000.
5. Collected $3,000 from customers for services performed in Transaction d.
6. Paid salaries of $4,500 for the current month.
7. Declared and paid $800 dividend to stockholders.
8. Purchased $2,800 of supplies on credit.

Required:

Show the effect of each transaction using the following model. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item, enter "0" since the net effect on the item is zero.

Transaction Analysis Galle Inc. entered into the following transactions during January. a. Borrowed $50,000 from First Street Bank by signing a note payable. b. Purchased $25,000 of equipment for cash. c. Paid $2,250 to landlord for rent for January. d. Performed services for customers on account, $10,000. e. Collected $3,000 from customers for services performed in Transaction d. f. Paid salaries of $4,500 for the current month. g. Declared and paid $800 dividend to stockholders. h. Purchased $2,800 of supplies on credit. Required: Show the effect of each transaction using the following model. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item, enter "0" since the net effect on the item is zero. Stockholders' Equity Contributed Capital Retained Earnings Assets = Liabilities + + a. b. C. d. e. f. g. h