Question

S MISC TRAVEL/GROUND THE GIRLS MUSIC RESTAURANTS SHOPPING ONE DRIVE FILES amework Question 1 of 6 < > VIEWPOICES Current Attempt in Progress Wildhorse Co.entered into these transactions during May 2022, its first month of operations. 1. 2. 3. 4. 5. 6. 7. Stockholders inwested $31,500 in the business in exchange for common stock of the company. Purchased computers for office use for $33,800 from Ladd on account Paid $4.100 cash for May rent on storage space. Performed computer services worth $18,600 on account. Performed computer services for Wharton Construction Company for $6,400 cash. Paid Western States Power Co. $8.000 cash for energy usage in May. Paid Ladd for the computers purchased in (2) Incurred advertising expense for May of $3,100 on account. Received $11,000 cash from customers for contracts billed in (4). 8. 9. Using the following tabular analysis show the effect of each transaction on the accounting equation. Put explanations for ch revenues or expenses in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity.pl negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. S Illustration 3-4 for example.) here to search 0 3 5 6 7 8 9 E R T

Answer 1

	Assets	=	Liabilites	+	Share holders Equity
	Cash	+	Accounts Receivable	+	Equipment	=	Accounts Payable	+	Common Stock	+	Retained Earning	Increse or Decrease in Shareholder Equity	Explanation
											Revenue	Expenses
1	$    31,500.00								$ 31,500.00				Increase	Increase in capital through common staock
2					$      33,800.00		$ 33,800.00						-	No effect as the increse in Accounts payable is offset by increase in equipment
3	$    (4,100.00)											$     (4,100.00)	Decrease	Decrease in equity due to occurance of expense
4			$    18,600.00								$        18,600.00		Increase	Increase in equity due to occurance of Revenue
5	$      6,400.00										$          6,400.00		Increase	Increase in equity due to occurance of Revenue
6	$    (8,000.00)											$     (8,000.00)	Decrease	Decrease in equity due to occurance of expense
7	$ (33,800.00)						$ (33,800.00)						-	No effect as the decrease in Accounts payable is offset by decrease in equipment
8							$    3,100.00					$     (3,100.00)	Decrease	Decrease in equity due to occurance of expense
9	$    11,000.00		$   (11,000.00)										-	No effect as accounts receivable is converted into cash
	$      3,000.00		$      7,600.00		$      33,800.00		$    3,100.00		$ 31,500.00		$        25,000.00	$   (15,200.00)