Effects of transaction on accounting equation


Response to the following problem:

During 2012, its first year of operations as a delivery service, Lopez Corp. entered into the following transactions.

1. Issued shares of common stock to investors in exchange for $100,000 in cash.

2. Borrowed $45,000 by issuing bonds.

3. Purchased delivery trucks for $60,000 cash.

4. Received $16,000 from customers for services provided.

5. Purchased supplies for $4,200 on account.

6. Paid rent of $5,600.

7. Performed services on account for $10,000. 8. Paid salaries of $28,000.

9. Paid a dividend of $11,000 to shareholders.

Using the tabular analysis, show the effect of each transaction on the accounting equation.

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Accounting Basics: Effects of transaction on accounting equation
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