ent Exercise 3-6 During 2017, its first year of operations as a delivery service

Question

ent Exercise 3-6 During 2017, its first year of operations as a delivery service, Bramble Corp. entered into the following transactions 1. Issued shares of common stock to investors in exchange for $119,000 in cash. 2. Borrowed $38,000 by issuing a note. 3. Purchased delivery trucks for $64,000 cash. 4. Received $15,000 from customers for services performed. 5. Purchased supplies for $6,000 on account. 6. Paid rent of $4,300. 7. Performed services on account for $11,300. 8. Paid salaries of $26,700. 9. Paid a dividend of $10,800 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for change decrease in Assets, Liabilities or Stockholders Equity, place a negative sign (or parentheses) in front of the amount Assets Liabilities Notes+Stock Common Accounts Receivable Accounts Payable +Payable tl Supplies Equipment Cash

Explanation / Answer

                      ASSETS Liabilities Cash Account Supplies Equipment Accounts Notes common Retained earnings Receivable payable payable stock Revenues Expenses Divideds 1 119,000 119,000 2 38,000 38,000 3 -64,000 64,000 4 15,000 15,000 5 6,000 6,000 6 4,300 -4,300 7 11,300 11,300 8 -26,700 -26,700 9 -10,800 -10,800 1 issue stock 2 3 4 service revenue 5 6 Rent expense 7 service revenue 8 Salaries and wages expense 9 Dividends

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