Chapter 1, Problem 23EA

Enter each transaction into the accounting equation and identify its increase or decrease to assets, liabilities, shareholder’s equity, revenues, or expenses of Green Trees & Lawn Corp.

1. 1. Green Trees & Lawn earned and collected the cash for $15,000 in service revenues.
2. 2. The business paid $2,000 cash for supplies.
3. 3. Green Trees & Lawn paid $1,500 of a $4,000 note payable to creditors.
4. 4. The company paid $1,100 for rent expense.
5. 5. The company’s owner provided $7,500 in additional financing in exchange for common stock.
6. 6. The business declared and paid $2,100 in dividends.
7. 7. Green Trees & Lawn loaned $2,225 cash to another company.
8. 8. Use the following format: