Question

1. During 2022, Larkspur Corp. entered into the following transactions.

1.		Borrowed $49,200 by issuing a note.
2.		Paid $7,380 cash dividend to stockholders.
3.		Received $10,660 cash from a previously billed customer for services performed.
4.		Purchased supplies on account for $2,542.

Using the following tabular analysis, show the effect of each transaction on the accounting equation. For retained earnings, use separate columns for revenues, expenses, and dividends if necessary. (If a transaction results in a decrease in Assets, Liabilities or Stockholder's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

		Assets					=	Liabilities			+	Stockholders’ Equity
														Retained Earnings
		Cash	+	Accounts Receivable	+	Supplies	=	Accounts Payable	+	Notes Payable	+	Common Stock	+	Revenues	-	Expenses	-	Dividends
1.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
2.		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount	Paid div
3.		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
4.		enter a dollar amount		enter a dollar amount		enter a dollar amount

2.

A tabular analysis of the transactions made during August 2022 by Shamrock Company during its first month of operations is shown below. Each change in revenues or expenses is explained.

		Assets							=	Liabilities	+	Stockholders’ Equity
														Retained Earnings
		Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Accounts Payable	+	Common Stock	+	Revenues	–	Expenses	–	Dividends
1.		$22,400										$22,400
2.		–1,120						$5,600		$4,480
3.		–840				$840
4.		4,592		$6,048										$10,640					Serv. Rev.
5.		–1,680								–1,680
6.		–2,240																–$2,240	Div.
7.		–896														–$896			Rent Exp.
8.		504		–504
9.		–3,360														–3,360			Sal./Wages Exp.
10.										336						–336			Util. Exp.

(b)

Determine how much stockholders’ equity increased for the month.

select an option                                                                      IncreaseDecrease in stockholders’ equity

$enter stockholders equity in dollars

Answer 1

• Requirement 1

	Assets					=	Liabilities			+	Stockholders’ Equity
														Retained Earnings
		Cash	+	Accounts Receivable	+	Supplies	=	Accounts Payable	+	Notes Payable	+	Common Stock	+	Revenues	-	Expenses	-	Dividends
1		$49,200		$0		$0		$0		$49,200		$0		$0		$0		$0
2		($7,380)		$0		$0		$0		$0		$0		$0		$0		($7,380)	Paid div
3		$10,660		($10,660)		$0		$0		$0		$0		$0		$0		$0
4		$0		$0		$2,542		$2,542

• [2]

>Increase in Stockholder’s Equity = Increase in common stock + Revenues – Expenses – Dividends
= $ 22400 + $ 10640 – 896 – 3360 – 336 – 2240
= $ 26,208