CuPry started her own consulting firm, Sage Hill Inc., on May 1, 2022. The following transactions occurred during the y. Маy 1 Stockholders invested $18,150 cash in the business in exchange for common stock. 2 Paid $726 for office rent for the month. Purchased $605 of supplies on account. Paid $182 to advertise in the County News. 9. Received $1.694 cash for services performed. 12 Paid $242 cash dividend. 3 5.

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Chapter8: Fraud, Internal Controls, And Cash
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Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
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Nona Curry started her own consulting firm, Sage Hill Inc., on May 1, 2022. The following transactions occurred during the month of
May.
May 1
Stockholders invested $18,150 cash in the business in exchange for common stock.
2
Paid $726 for office rent for the month.
3.
Purchased $605 of supplies on account.
Paid $182 to advertise in the County News.
6.
Received $1,694 cash for services performed.
12
Paid $242 cash dividend.
15
Performed $5,082 of services on account.
17
Paid $3,025 for employee salaries.
20
Paid for the supplies purchased on account on May 3.
23
Received a cash payment of $1,452 for services performed on account on May 15.
26
Borrowed $6,050 from the bank on a note payable.
29
Purchased office equipment for $2,420 paying $242 in cash and the balance on account.
30
Paid $218 for utilities.
Transcribed Image Text:Nona Curry started her own consulting firm, Sage Hill Inc., on May 1, 2022. The following transactions occurred during the month of May. May 1 Stockholders invested $18,150 cash in the business in exchange for common stock. 2 Paid $726 for office rent for the month. 3. Purchased $605 of supplies on account. Paid $182 to advertise in the County News. 6. Received $1,694 cash for services performed. 12 Paid $242 cash dividend. 15 Performed $5,082 of services on account. 17 Paid $3,025 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,452 for services performed on account on May 15. 26 Borrowed $6,050 from the bank on a note payable. 29 Purchased office equipment for $2,420 paying $242 in cash and the balance on account. 30 Paid $218 for utilities.
Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to
be repaid within the year. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or
parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for
example.)
Assets
Date
Cash
Accounts Receivable
Supplies
May 1
%2.
%24
May 2
May 3
May 5
May 9
May 12
May 15
May 17
May 20
May 2
Transcribed Image Text:Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-4 for example.) Assets Date Cash Accounts Receivable Supplies May 1 %2. %24 May 2 May 3 May 5 May 9 May 12 May 15 May 17 May 20 May 2
Expert Solution
Step 1

According to the accounting equation, a company's total assets equal the sum of its liabilities and shareholders' equity. This simple number on a company balance sheet is regarded as the bedrock of the double-entry accounting system.

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