Wyoming Co. began its operations on January 1, 2007. During2007 it had the following cash transactions.
a. The owners invested $10,000 in the business.
b. Provided services to customers for $6,000.
c. Borrowed $5,000 from the Local Bank.
d. Incurred $2,500 in expenses.
e. Made a $1,500 distribution to the owners.
Required:
1. Explain how each of these transactions would affect Wyoming'saccounting equation using the form provided below. Usebrackets, ( ), to indicate amounts being subtracted. Thefirst transaction has been done as an example. Be sure toinclude your Totals.
2. Prepare an income statement, statement of changes instockholders' equity, balance sheet, and statement of cashflows.