Question

During 2022, its first year of operations as a delivery service, Marigold Corp. entered into the following transactions.

1.		Issued shares of common stock to investors in exchange for $120,000 in cash.
2.		Borrowed $53,000 by issuing bonds.
3.		Purchased delivery trucks for $51,000 cash.
4.		Received $17,000 from customers for services performed.
5.		Purchased supplies for $6,200 on account.
6.		Paid rent of $5,800.
7.		Performed services on account for $10,900.
8.		Paid salaries of $26,600.
9.		Paid a dividend of $10,200 to shareholders.

Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the far right column. (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							=	Liabilities			+	Stockholders’ Equity
		Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Accounts Payable	+	Bonds Payable	+	Common Stock	+	Retained Earnings
																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		$enter a dollar amount		select an explanation for changes to stockholders equitySalaries and Wages ExpenseService RevenueRent ExpenseIssued StockDividends Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(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		enter a dollar amount		select an explanation for changes to stockholders equityDividendsIssued StockSalaries and Wages ExpenseRent ExpenseService Revenue Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(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		enter a dollar amount		select an explanation for changes to stockholders equityIssued StockSalaries and Wages ExpenseDividendsRent ExpenseService Revenue Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(4)		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		enter a dollar amount		select an explanation for changes to stockholders equityIssued StockRent ExpenseSalaries and Wages ExpenseService RevenueDividends Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(5)		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		enter a dollar amount		select an explanation for changes to stockholders equityIssued StockDividendsSalaries and Wages ExpenseRent ExpenseService Revenue Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(6)		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		enter a dollar amount		select an explanation for changes to stockholders equityService RevenueRent ExpenseSalaries and Wages ExpenseDividendsIssued Stock Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(7)		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		enter a dollar amount		select an explanation for changes to stockholders equitySalaries and Wages ExpenseRent ExpenseDividendsIssued StockService Revenue Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(8)		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		enter a dollar amount		select an explanation for changes to stockholders equityService RevenueRent ExpenseSalaries and Wages ExpenseIssued StockDividends Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
(9)		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		enter a dollar amount		select an explanation for changes to stockholders equitySalaries and Wages ExpenseService RevenueDividendsIssued StockRent Expense Issued StockService RevenueRent ExpenseSalaries and Wages ExpenseDividends
		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount	=	$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

eTextbook and Media

Answer 1

Notes:

1. Be careful while reading amounts from image (with commas).
2. I have provided balance after ever transaction for better understanding.
3. All negative amounts are entered with minus sign and highlighted with red color.
4. It is difficult to know that the dividen column is specified in your answer or not. I have prepaerd dividend column. If it is not provided in your answer, please enter the amount in expense section.
5. If you still have any doubt, feel free to ask in comment section.