Problem:
1. sold common stock for cash to start business
2. Paid monthly rent
3. purchased equipment on account
4. billed customers for services performed
5. paid dividends
6. received cash from customers billed in (4)
7. incurred advertising expense on account
8. purchased additional equipment for cash
9. received cash from customers when service was performed
Instructions:
List the numbers of the above transactions and describe the effect of each transaction on assets, liabilities, and stockholders equity.
Example: the first answer is: (1) increase in assets and increase in stockholder's equity.