Question

Question 3 View Policies Current Attempt in Progress During 2022, its first year of operations as a delivery service, Monty Corp.entered into the following transactions. 1. Issued shares of common stock to investors in exchange for $109,000 in cash. 2. Borrowed $53,000 by issuing bonds. 3. Purchased delivery trucks for $60,000 cash. 4. Received $14,000 from customers for services performed. 5. Purchased supplies for $4,100 on account. 6. Paid rent of $6,200. 7. Performed services on account for $11.900. 8. Paid salaries of $28.600. 9. Paid a dividend of $11,200 to shareholders. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (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 Cash Accounts + Receivable Supplies Equipment Accounts = Payable Bonds Payabl (1) $ e Textbook and Media Save for Later Attempts: unlimited Submit Answer

Answer 1

	Assets				Liabilities		Stockholders' Equity
	Cash	Accounts Receivable	Supplies	Equipment	Accounts payable	Bonds payable	Common Stock	Retained Earnings
								Revenues	Expenses	Dividends
1	109000						109000				Issued stock
2	53000					53000
3	-60000			60000
4	14000							14000			Service Revenue
5			4100		4100
6	-6200								-6200		Rent expense
7		11900						11900			Service Revenue
8	-28600								-28600		Salaries and wages expense
9	-11200									-11200	Dividends
	70000	11900	4100	60000	4100	53000	109000	25900	-34800	-11200