During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31. 1. Issued common shares to investors in exchange for $ 90,000 in cash. 2. Borrowed $ 46,000 cash from the bank, due 2020. 3. Purchased delivery vehicles for $ 61,000 cash. 4. Received $ 24,000 from customers for services provided. 5. Purchased supplies for $ 3,700 on account. 6. Paid rent of $ 5,500. 7. Performed services on account for $ 9,000. 8. Paid salaries of $ 28,000. 9. Declared and paid a dividend of $ 12,000 to shareholders. 10. Paid income taxes of $ 200 for the month. Indicate the effect of each transaction on the accounting equation. Use the following format. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or in parenthesis e.g. (15,000).) Assets = Liabilities + Shareholders’ Equity Retained Earnings Cash + Accounts Receivable + Supplies + Vehicles = Accounts Payable + Bank Loan Payable + Common Shares + Revenues - Expenses - Dividends Declared 1 $ $ $ $ $ $ $ $ $ $ 2 3 4 5 6 7 8 9 10 $ + $ + $ + $ = $ + $ + $ + $ - $ - $
During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31. 1. Issued common shares to investors in exchange for $ 90,000 in cash. 2. Borrowed $ 46,000 cash from the bank, due 2020. 3. Purchased delivery vehicles for $ 61,000 cash. 4. Received $ 24,000 from customers for services provided. 5. Purchased supplies for $ 3,700 on account. 6. Paid rent of $ 5,500. 7. Performed services on account for $ 9,000. 8. Paid salaries of $ 28,000. 9. Declared and paid a dividend of $ 12,000 to shareholders. 10. Paid income taxes of $ 200 for the month. Indicate the effect of each transaction on the accounting equation. Use the following format. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or in parenthesis e.g. (15,000).) Assets = Liabilities + Shareholders’ Equity Retained Earnings Cash + Accounts Receivable + Supplies + Vehicles = Accounts Payable + Bank Loan Payable + Common Shares + Revenues - Expenses - Dividends Declared 1 $ $ $ $ $ $ $ $ $ $ 2 3 4 5 6 7 8 9 10 $ + $ + $ + $ = $ + $ + $ + $ - $ - $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.
1. | Issued common shares to investors in exchange for $ 90,000 in cash. | |
2. | Borrowed $ 46,000 cash from the bank, due 2020. | |
3. | Purchased delivery vehicles for $ 61,000 cash. | |
4. | Received $ 24,000 from customers for services provided. | |
5. | Purchased supplies for $ 3,700 on account. | |
6. | Paid rent of $ 5,500. | |
7. | Performed services on account for $ 9,000. | |
8. | Paid salaries of $ 28,000. | |
9. | Declared and paid a dividend of $ 12,000 to shareholders. | |
10. | Paid income taxes of $ 200 for the month. |
Indicate the effect of each transaction on the
Assets | = | Liabilities | + | Shareholders’ Equity | ||||||||||||||||
Cash | + | Accounts Receivable |
+ | Supplies | + | Vehicles | = | Accounts Payable | + | Bank Loan Payable |
+ | Common Shares | + | Revenues | - | Expenses | - | Dividends Declared | ||
1 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||
2 | ||||||||||||||||||||
3 | ||||||||||||||||||||
4 | ||||||||||||||||||||
5 | ||||||||||||||||||||
6 | ||||||||||||||||||||
7 | ||||||||||||||||||||
8 | ||||||||||||||||||||
9 | ||||||||||||||||||||
10 | ||||||||||||||||||||
$ | + | $ | + | $ | + | $ | = | $ | + | $ | + | $ | + | $ | - | $ | - | $ |
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