Wong Computer Corporation entered into these transactions during the month of May:

1. Purchased computers on account for $8,000 from Dell.

2. Paid $1,600 for rent for the month of May.

3. Provided computer services for $3,800 on account.

4. Paid Ontario Hydro $500 cash for utilities used in May.

5. Issued common shares to Li Wong in exchange for an additional $20,000 investment in the business.

6. Paid Dell for computers purchased in transaction 1.

7. Purchased a one-year accident insurance policy for $500 cash.

8. Received $3,500 cash in payment of the account in transaction 3.

9. Paid Li Wong a $500 dividend.

10. Paid income taxes of $400 for the month.

Instructions

Using (+) for increase, (-) for decrease, and (NE) for no effect, indicate the effect each of the transactions listed above had on the accounting equation and its amount. Use the following format, in which the first one has been done for you as an example:

Transcribed Image Text:

Shareholders' Equity Retained Earnings Trans- action Assets Liabilities Shares Revenues Expenses Dividends Common +$8,000 $8,000 NE NE NE NE