Brief Exercise 3-3 During 2017, Ivanhoe Company entered into the following transactions. 1. Purchased equipment for $317,240 cash. 2. Issued common stock to investors for $135,850 cash. 3. Purchased inventory of $65,970 on account. Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Liabilities Stockholders' Equity Assets +
Brief Exercise 3-3 During 2017, Ivanhoe Company entered into the following transactions. 1. Purchased equipment for $317,240 cash. 2. Issued common stock to investors for $135,850 cash. 3. Purchased inventory of $65,970 on account. Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Liabilities Stockholders' Equity Assets +
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text:Brief Exercise 3-3
During 2017, Ivanhoe Company entered into the following transactions.
1. Purchased equipment for $317,240 cash.
2. Issued common stock to investors for $135,850 cash.
3. Purchased inventory of $65,970 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses,
and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of
the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)
Liabilities
(1)
(2)
(3)
$
Stockholders' Equity
Assets
Cash + Inventory + Equipment = Accounts Payable + Common Stock + Retained Earnings
$
$
Click if you would like to Show Work for this question: Open Show Work
$
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