During 2025, its first year of operations as a delivery service, Pharoah Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $137,000 in cash. 2. Borrowed $55,000 by issuing bonds. 3. Purchased delivery trucks for $63,000 cash. 4. Received $18,000 from customers for services performed. 5. Purchased supplies for $6,600 on account. 6. Paid rent of $5,900. 7. Performed services on account for $10,700. 8. Paid salaries of $26,700. 9. Paid a dividend of $11,500 to stockholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for cha Stockholders' Equity in the far-right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equ place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item was reduced.) (2) (3) རྒྱ་སེ་གྱི (1) Assets Accounts Cash Receivable Supplies Equipment

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
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Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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During 2025, its first year of operations as a delivery service, Pharoah Corp. entered into the following transactions.
1.
Issued shares of common stock to investors in exchange for $137,000 in cash.
2.
Borrowed $55,000 by issuing bonds.
3.
Purchased delivery trucks for $63,000 cash.
4.
Received $18,000 from customers for services performed.
5. Purchased supplies for $6,600 on account.
6.
Paid rent of $5,900.
7.
Performed services on account for $10,700.
8.
Paid salaries of $26,700.
9.
Paid a dividend of $11,500 to stockholders.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for cha
Stockholders' Equity in the far-right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equ
place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item
was reduced.)
(2)
(3)
རྒྱ་སེ་གྱི
(1)
Assets
Accounts
Cash
Receivable
Supplies
Equipment
Transcribed Image Text:During 2025, its first year of operations as a delivery service, Pharoah Corp. entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $137,000 in cash. 2. Borrowed $55,000 by issuing bonds. 3. Purchased delivery trucks for $63,000 cash. 4. Received $18,000 from customers for services performed. 5. Purchased supplies for $6,600 on account. 6. Paid rent of $5,900. 7. Performed services on account for $10,700. 8. Paid salaries of $26,700. 9. Paid a dividend of $11,500 to stockholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for cha Stockholders' Equity in the far-right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equ place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item was reduced.) (2) (3) རྒྱ་སེ་གྱི (1) Assets Accounts Cash Receivable Supplies Equipment
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