During 2012, Gavin Corp. entered into the following transactions.
1. Borrowed $60,000 by issuing bonds.
2. Paid $9,000 cash dividend to stockholders.
3. Received $13,000 cash from a previously billed customer for services provided.
4. Purchased supplies on account for $3,100.
Using the following tabular analysis, show the effect of transaction on the accounting equation. Put explanations for changes to Stockholders" Equity in the right-hand margin. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. Use Illustration 3-3 (page 110) as a model.
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Assets
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= Liabilities
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+ Stockholders" Equity
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Cash
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Accounts
+Receivable
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+Supplies
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Accounts
=Payable
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Bonds
+Payable
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Common
+Stock
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Retained
+Earnings
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