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Analyze effects of transactions

1. On October 1, cash of $10,000 was invested in Sierra Corporation in exchange for 10,000 common shares.

2. October 1, Sierra borrowed $5,000 from Scotia bank by signing a note payable.

3. October 1, Sierra acquired equipment by paying $5,000 cash to superior equipment.

4. October 2, Sierra received a $1,200 cash advance from R.Knox, a client, for advertising services that are expected to be completed before November 15.

5. October 2, Sierra Corporation paid its office rent for the month of October in cash, $900.

6. October 3, Sierra paid $600 for a one-year insurance policy effective October 1 that expires next year on September 30.

7. October 4, Sierra hired four new employees to begin work on Monday, October 8. Each employee will receive a weekly salary of $500 for a five-day (Monday-Friday) workweek, payable every two weeks. Employees will receive their first pay cheques on Friday, October 19.

8. October 9, Sierra purchased advertising materials on account from Aero Supply Corp. for $2,500.The account is due in 30 days. this transaction is referred to as a purchase "on account" or "on credit".

9. October 13, Sierra performed $10,000 of advertising services for Copa Ltd. Sierra sent Copa a bill for these services asking for payment before the end of the month.

10. October 26, Sierra paid a $500 cash dividend.

11 October 30, Copa paid Sierra the amount owing on its account.

Create a transaction table.

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