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Green Wave Company plans to own and operate a storage rental facility. Required: 2 points...

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Question

Accounting

Green Wave Company plans to own and operate a storage rental facility.
Required:
2
points
For the first month of operations, the company had the following transactions. For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders' equity increases.
\table[[1 Transactions,Dual Effect],[1. Issue 10,000 shares of common stock in exchange for $32,000 in cash.,Assets increase and stockholders' equity increases.],[2. Purchase land for $19,000. A note payable is signed for the full amount.,Assets increase and stockholders' equity increases],[3. Purchase storage container equipment for $8,000 cash.,Assets increase and liabilities increase.],[4. Hire three employees for $2,000 per month.,],[5. Receive cash of $12,000 in rental fees for the current month.,],[\table[[6. Purchase office supplies for $2,000 on account.],[7. Pay employees $6,000 for the first month's salaries]],Assets decrease and stockholders' equity decreases.],[7. Pay employees $6,000 for the first month's salaries.,\table[[Assets increase and liabilities increase.],[Assets increase and stockholders' equity increases.],[No effect]]]]
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