Chapter 1, Problem 1.48BP

Using the accounting equation for transaction analysis

Cosmo Timmins started a new business, Timmins Gymnastics, and completed the following transactions during December:

Dec. 1	Cosmo contributed $20,000 cash in exchange for common stock.
2	Received $2,200 cash from customers for services performed.
5	Paid $350 cash for office supplies.
9	Performed services for a customer and billed the customer for services rendered, $4,500.
10	Received $100 invoice for utilities due in two weeks.
15	Paid for advertising in the local paper, $475.
20	Paid utility invoice received on Dec. 10.
25	Collected cash in full from customer billed on Dec. 9.
28	Paid rent for the month, $3,000.
28	Paid $1,500 to assistant for wages.
30	Received $2,000 cash from customers for services performed.
31	Cash dividends of $3,500 were paid to stockholders.

Analyze the effects of the transactions on the accounting equation of Timmins Gymnastics using a format similar to Exhibit 1-6.

Exhibit 1-6 Analysis of Transactions, Smart Touch Learning