Chapter 2, Problem 44E

Exercise 2-44 Transaction Analysis OBJECTIVE 9

During December, Cynthiana Refrigeration Service engaged in the following transactions:

1. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $12,000 cash.
2. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,100 in cash for the service call.
3. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $36,500. Cynthiana paid $5,500 down and signed a 1-year note for the balance.
4. Cynthiana received a $3,200 order of repair parts from Carrier Corporation on December 19. Carrier is expected IO bill Cynthiana for $3,200 in early January.
5. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $300 cash. Cynthiana gave the turkeys to its employees as a Christmas gift

Required:

For each transaction described above, indicate the effects on assets’ liabilities, and stockholders’ equity using the formal below.