CALCULATOR PRINTER Exercise 3-5 Cullumber Com pany, a computer services company,

Question

CALCULATOR PRINTER Exercise 3-5 Cullumber Com pany, a computer services company, entered into these transactions during May 2017, Its first month of 1. Stockholders Invested $40,000 In the business in exchange for common stock of 2 Purchased computers for office use (recorded as Equipment) for $30,600 from Ladd on account 3. Paid $2,600 cash for May rent on storage space 4. Performed computer services worth $20,000 on account 5. Performed computer services for Wharton Construction Company for $3,500 cash. 6. Paid Western States Power Co. $7,200 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $2,500 on account. 9. Received $10,300 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 o column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders Equity, place a entered for the particular Asset, Liability or Equity item that was reduced.) negative sign (or parentheses) in Assets Liabilities Stockholders' Equity AccountsEquipmentPayable ReceivableEquipmentAccounts PayableStockRetained Earnings Revenues Expenses icy 1 2000-2018 John Wiley &Sons Inc. All Rights Reserved. A Division of 2obn Wiley &Sons.Ins

Explanation / Answer

Cash Accounts Receivable Equipment Accounts Payable Common Stock Revenue Expenses 1 40000 40000 Issued stock 2 30600 30600 3 -2600 -2600 Rent expense 4 20000 20000 Service revenue 5 3500 3500 Service revenue 6 -7200 -7200 Utilities expense 7 -30600 -30600 8 2500 -2500 Advertising expense 9 10300 -10300 13400 9700 30600 2500 40000 23500 -12300

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.