Question

1. View Policies Current Attempt in Progress Sandhill Co, entered into these transactions during May 2022, its first month of operations. Stockholders invested $45,000 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $26,700 from Ladd on account. Paid $3,000 cash for May rent on storage space. Performed computer services worth $15,100 on account. Performed computer services for Wharton Construction Company for $6,000 cash. 6. Paid Western States Power Co. $7,500 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8 Incurred advertising expense for May of $3,100 on account. Received $10,400 cash from customers for contracts billed in (4). 3. 4. 5. 9. Using the following tabular analysis show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses 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 Mustration 3-4 for example.) ht

Answer 1

Sr no. + + 1 - 2 + 3 - 4 Assets Liabilities Shareholder's Account Account Equity Cash Receivables + Equipment = Payable $ 45,000 + $ + $ = $ + $ 45,000 + $ 26,700 = $ 26,700 + $ -3,000 + $ + $ = $ + $ -3,000 $ + $ 15,100 + $ = $ + $ 15,100 $ 6,000 + $ + $ = $ + $ 6,000 $ -7,500 + $ + S = $ + $ -7,500 $-26,700 + $ + $ = $ -26,700 + $ $ + $ + $ = $ 3,100 + $ -3,100 $ 10,400 + $ -10,400 + $ = $ + $ $ 24,200 $ 4,700 $ 26,700 $ 3,100 $ 52,500 5 6 7 8 9

Note:- i) The computer is classified under the head "Equipment". ii) Please comment if you have any doubt, Kindly give positive rating.