Chapter 2, Problem 30BE

Brief Exercise 2-30 Transaction Analysis

Galle Inc. entered into the following transactions during January.

1. Borrowed $50,000 from First Street Bank by signing a new payable.
2. Purchased $25,000 of equipment for cash.

(Continued)

1. Paid $500 to landlord for rent for January.
2. Performed services for customers on account, $10,000.
3. Collected $31000 from customers for services performed in Transaction d.
4. Paid salaries of $2,500 for the current month.

Required:

Show the effect of each transaction using the following model.