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 $ + $ + $ + $ = $ + $ + $ + $ - $ - $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

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 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
		$	+	$	+	$	+	$	=	$	+	$	+	$	+	$	-	$	-	$