Sunland Company decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. (1)   Sunland Company invests $20500 cash in exchange for common stock to start the pizza parlor on June 1. (2)   Purchased equipment for $4000 paying $1850 in cash and the remainder due in 30 days. (3)   Purchased supplies for $1700 cash. (4)   Received a bill from Campus News for $300 for advertising in the campus newspaper. (5)   Cash receipts from customers for pizza sales amounted to $2000. (6)   Paid salaries of $210 to student workers. (7)   Billed the Tiger Football Team $250 for pizzas ordered. (8)   Paid $300 to Campus News for advertising that was previously billed in Transaction 4. (9)   Sunland Company was paid dividends of $1400. (10)   Incurred utility expenses for month on account, $80. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders' equity. (If Balance is negative then enter either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter all transaction amounts as positive and select the appropriate sign from the drop down.) Transaction   Cash + Accounts Receivable + Supplies + Equipment

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...
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Sunland Company decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation.

(1)   Sunland Company invests $20500 cash in exchange for common stock to start the pizza parlor on June 1.
(2)   Purchased equipment for $4000 paying $1850 in cash and the remainder due in 30 days.
(3)   Purchased supplies for $1700 cash.
(4)   Received a bill from Campus News for $300 for advertising in the campus newspaper.
(5)   Cash receipts from customers for pizza sales amounted to $2000.
(6)   Paid salaries of $210 to student workers.
(7)   Billed the Tiger Football Team $250 for pizzas ordered.
(8)   Paid $300 to Campus News for advertising that was previously billed in Transaction 4.
(9)   Sunland Company was paid dividends of $1400.
(10)   Incurred utility expenses for month on account, $80.


Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders' equity. (If Balance is negative then enter either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter all transaction amounts as positive and select the appropriate sign from the drop down.)

Transaction   Cash + Accounts Receivable + Supplies + Equipment
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