Question

Carla Vista Co. entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $38,500 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $26,200 from Ladd on account. 3. Paid $2,800 cash for May rent on storage space. 4. Performed computer services worth $16,300 on account. 5. Performed computer services for Wharton Construction Company for $4,100 cash. 6. Paid Western States Power Co. $6,200 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $2.400 on account. 9. Received $10.400 cash from customers for contracts billed in (4).

Answer 1

	Assets			Liabilities	Stockholders' Equity
	Cash	Accounts Receivable	Equipment	Accounts Payable	Common Stock	Retained Earnings
						Revenues	Expenses
1	38500				38500
2			26200	26200
3	-2800						-2800	Rent expense
4		16300				16300		Service Revenue
5	4100					4100		Service Revenue
6	-6200						-6200	Utilities expense
7	-26200			-26200
8				2400			-2400	Advertising expense
9	10400	-10400
	17800	5900	26200	2400	38500	20400	-11400