During 2017, its first year of operations as a delivery service, Bramble Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $119,000 in cash. 2. Borrowed $38,000 by issuing bonds. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,000 on account. 6. Paid rent of $4,300. 7. Performed services on account for $11,300. 8. Paid salaries of $26,700. 9. Paid a dividend of $10,800 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the far right column.
During 2017, its first year of operations as a delivery service, Bramble Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $119,000 in cash. 2. Borrowed $38,000 by issuing bonds. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,000 on account. 6. Paid rent of $4,300. 7. Performed services on account for $11,300. 8. Paid salaries of $26,700. 9. Paid a dividend of $10,800 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the far right column.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2017, its first year of operations as a delivery service, Bramble Corp. entered into the following transactions.
| 1. | Issued shares of common stock to investors in exchange for $119,000 in cash. | |
| 2. | Borrowed $38,000 by issuing bonds. | |
| 3. | Purchased delivery trucks for $64,000 cash. | |
| 4. | Received $15,000 from customers for services performed. | |
| 5. | Purchased supplies for $6,000 on account. | |
| 6. | Paid rent of $4,300. | |
| 7. | Performed services on account for $11,300. | |
| 8. | Paid salaries of $26,700. | |
| 9. | Paid a dividend of $10,800 to shareholders. |
Using the following tabular analysis, show the effect of each transaction on the
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