Question - Rowand Enterprises had the following selected transactions.
1. Aaron Rowand invested $4,000 cash in the business in exchange for common stock.
2. Paid office rent of $1,100.
3. Performed consulting services and billed a client $5,200.
4. Paid $700 cash dividend.
Instructions
(a) Indicate the effect each transaction has on the basic equation (Assets = Liabilities + Owner's Equity).
(b) Journalize each transaction.