During 2017, its first year of operations as a delivery service, Riverbed Corp e

Question

During 2017, its first year of operations as a delivery service, Riverbed Corp entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $146,000 in cash. 2. Borrowed $45,000 by issuing bonds 3. Purchased delivery trucks for $ 63,000 cash. 4 Received $15,000 from customers for services performed 5. Purchased supplies for $ 5,000 on account. 6. Paid rent of $ 5,900. 7. Performed services on account for $10,700. 8. Paid salaries of $ 27,400. 9. Paid a dividend of $ 10,100 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (Ifa transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced, see Illustration 3-3 for example.)

Explanation / Answer

                     Assets                                                liabilities Stockholders Equity Cash A/R Supplies Equipment A/P Bonds payable Comm stock            Retained earnings      Revenues Expense Dividends 1 146,000 146,000 2 45,000 45,000 3 -63,000 63,000 4 15,000 15,000 5 5,000 5,000 6 -5,900 -5,900 7 10,700 10,700 8 -27,400 -27,400 9 -10,100 -10,100 99,600 10700 5000 63000 5000 45000 146,000 25700 -33300 -10100 1 issue stock 2 3 4 Service revenue 5 6 Rent expense 7 Service revenue 8 Salaries and wage expense 9 Dividends

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