Chapter 1, Problem 38EB

Enter each transaction into the accounting equation and identify an increase or decrease to assets, liabilities, shareholders’ equity, revenues, or expenses of Captured Memories Photography, Inc.

1. 1. Captured Memories collected and earned $16,150 in sales revenues.
2. 2. The firm paid $1,500 cash for supplies.
3. 3. Captured Memories paid $1,000 of a $3,000 note payable to creditors.
4. 4. The company paid $1,750 for operating expenses.
5. 5. The company’s owner provided $6,500 in additional financing in exchange for common stock.
6. 6. The firm declared and paid $1,020 in dividends.

Use the following format: