Stockholders' Transaction Assets Liabilities + Equity 1. Issue common stock in exchange for cash, $15,000. 2. Obtain a loan from the bank for $9,000. 3. Receive cash of $1,200 in advance + $15,000 $0 + +$15,000 %3D from customers. 4. Purchase supplies on account, $2,400. 5. Pay one year of rent in advance, $12,000. 6. Provide services to customers on account, $3,000. 7. Repay $4,000 of the loan in (2) above. 8. Pay the full amount for supplies purchased in (4) above. 9. Provide services to customers in (3) above. 10. Pay cash dividends of $1,000 to stockholders. Totals + || | ||

Stockholders' Transaction Assets Liabilities + Equity 1. Issue common stock in exchange for cash, $15,000. 2. Obtain a loan from the bank for $9,000. 3. Receive cash of $1,200 in advance + $15,000 $0 + +$15,000 %3D from customers. 4. Purchase supplies on account, $2,400. 5. Pay one year of rent in advance, $12,000. 6. Provide services to customers on account, $3,000. 7. Repay $4,000 of the loan in (2) above. 8. Pay the full amount for supplies purchased in (4) above. 9. Provide services to customers in (3) above. 10. Pay cash dividends of $1,000 to stockholders. Totals + || | ||

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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