90.2K

Verified Solution

Link Copied!

CALCULATOR PRE Exercise 3-02 Oriole Company entered into these transactions during May 2022, its first month of operations, 1. Stockholders invested $36,000 in the business in exchange for common stock of the company, 2. Purchased computers for office use for $33,300 from Ladd on account. 3. Paid $3,800 cash for May rent on storage space. 4. Performed computer services worth $16,500 on account. 5. Performed computer services for Wharton Construction Company for $3,500 cash. 6. Pald Western States Power Co. $7,700 cash for energy usage in May. 7. Pald Ladd for the computers purchased in (2) B. Incurred advertising expense for May of $3,000 on account. 9. Received $10,000 cash from customers for contracts billed in (4), Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount Asset Liability or Equity item that was reduced. See Illustration 3-4 for example) Assets Liabilities Stockholders' Equity Accounts Accounts Cash Common Receivable Equipment Payable Retained Earnings Stock Revenues Expenses (1) 5 3 + + (2) (3) (5) earch o

Answer & Explanation Solved by verified expert

See Answer