Question

- Your answer is partially correct. Cullumber Company, a computer services company, entered into these transactions during May 2017, its first month of operations. 1. Stockholders invested $42,500 in the business in exchange for common stock of the company. 2 Purchased computers for office use (recorded as Equipment) for $31,900 from Ladd on account. 3. Pald $2,900 cash for May rent on storage space. Performed computer services worth $17,900 on account. 5. Performed computer services for Wharton Construction Company for $5,400 cash. 6. Pald Western States Power Co. $8,300 cash for energy usage in May. 7. Pald Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,600 on account. 9. Received $14,000 cash from customers for contracts billed in (4).

Answer 1

	Assets			liabilities	Stockholder's Equitu
	Cash	Accounts	Equipment	Accounts	Common
		Receivable		payable	Stock	Revenues	Expenses
1	42,500				42,500			Cash invested
2			31,900	31,900
3	-2,900						-2,900	Rent expense
4		17,900				17,900		Computer services
5	5,400					5,400		computer service revenue
6	-8,300						-8,300	Enegry expense
7	-31,900			-31,900
8				1,600			-1,600	Advertising expense
9	14,000	14,000
	18,800	31900	31900	1600	42,500	23300	-12800