Question

In Accounting

Question 3 View Policies Current Attempt in Progress During 2022, Oriole Company entered into the following transactions. 1. Purchased equipment for $315,300 cash. 2. Issued common stock to investors for $138,710 cash. 3. Purchased inventory of $70,260 on account. Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a 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 3-4 for example.) Assets Liabilities + Stockholders' Equity + Retained Earnings Cash + Inventory + Equipment Accounts Payable + Common Stock

Answer 1

Solution

	Assets+			Liabilities+	Stockholder's equity
	Cash+	Inventory+	Equipment=	Accounts payable+	Common stock+	Retained earnings
(1)	$   (315,300.00)		$     315,300.00
(2)	$     138,710.00				$     138,710.00
(3)		$         70,260.00		$   70,260.00

Leave the blank columns as they are.