Question - Tex Holcomb began Rodeo Clowns as a corporation and completed these transactions during October of the current year:
Oct 1 Invested $50,000 cash of from his personal checking account into the newly created business. Tex received common stock.
Oct 3 Purchased some office supplies for $500 cash.
Oct 4 Rented office space for the company and paid the landlord $1,200 cash for the month.
Oct 5 Purchased some office equipment for $15,000. He paid $5,000 cash on this date and agreed to pay the balance due within 12 months.
Oct 9 Provided $4,000 of services to a client who paid cash to the company on this date.
Oct 11 Provided $2,000 of services to another client on account. The client will pay the company within 30 days.
Oct 22 Paid monthly utility bill of $200.
Oct 25 Received the $2,000 cash from the client for the services that were provided on Oct 11.
Oct 30 Paid the company's office manager's salary of $1,500 with cash.
Oct 31 Paid a cash dividend of $1,000 on this date.
Show the effects of the above transactions on the accounting equation (impact on total assets, total liabilities, and total equity) of Rodeo Clowns. Use the following format for your answers. The first item is shown as an example of how you should respond.