Question

CAT-CL2350-34 Question 2 View Policies Current Attempt in Progress During 2002. its first year of operations as a delivery service, Blue Spruce Corp entered into the following transactions 1 issued shares of common stock to investors in exchange for $121,000 in cash 2. Borrowed $38.000 byssing bonds 3 Purchased delivery trudies for $64.000 cash Received $16.000 ron customers for services performed 5. Purchased supplies for $3200 on account. Paid rent of $5300 7. Performed services on account for $11.700 8 Paid salaries of $28.900 9. Pada dividend of $10.00 to shareholders Using the following b a Lab or Stockholders foi sis show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right enc o rporentheses) in front of the amounted for the particular Asset, Libility or Equity that was reduced, sest Assets oo е в бэ DELL

Answer 1

	Assets				=	Liabilities		+	Equity
	Cash	Accounts Receiavble	Supplies	Equipment		Accounts Payable	Bonds Payable		Common Stock	Retained Earnings
1	$ 121,000								$ 121,000
2	$   38,000						$ 38,000
3	$ -64,000			$      64,000
4	$   16,000									$   16,000
5			$   3,200			$    3,200
6	$    -5,300									$    -5,300
7		$      11,700								$   11,700
8	$ -28,900									$ -28,900
9	$ -10,800									$ -10,800
Totals	$   66,000	$      11,700	$   3,200	$      64,000		$    3,200	$ 38,000		$ 121,000	$ -17,300