McBride Company entered into these transactions during May 2010.
1. Purchased computers for office use for $30,000 from Dell on account.
2. Paid $4,000 cash for May rent on storage space.
3. Received $12,000 cash from customers for contracts billed in April.
4. Provided computer services to Brieske Construction Company for $5,000 cash.
5. Paid Southern States Power Co. $11,000 cash for energy usage in May.
6. Stockholders invested an additional $40,000 in the business in exchange for common stock of the company.
7. Paid Dell for the computers purchased in (1).
8. Incurred advertising expense for May of $1,000 on account.
Instructions
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin.
|
Assets
|
=
|
Liabilities
|
+
|
Stockholders' Equity
|
|
Accounts
|
Office
|
=
|
Accounts
|
Common
|
Retained Earnings
|
|
Cash
|
+
|
Receivables
|
+
|
Equipments
|
Payable
|
Stock
|
+
|
Revenues
|
-
|
Expenses
|
-
|
Dividends
|