Sunland Company entered into these transactions during May 2017, its rst month of operations. Stockholders invested $43,500 in the business in...
How do I determine the amounts for the transactions at Sunland Company?
Sunland Company entered into these transactions during May 2017, its first month of operations. Stockholders invested $43,500 in the business in exchange for common stock of the companyPurchased computers for office use for $32,200 from Ladd on account. Paid $5,300 cash for May rent on storage space. Performed computer services worth $17,800 on account. Performed computer services for Wharton Construction Company for $5,600 cash. Paid Western States Power Co. $7,600 cash for energy usage in May. Paid Ladd for the computers purchased in (2). Incurred advertising expense for May of $1,900 on account. Received $12,900 cash from customers for contracts billed in (4). EDPVNQWPWN!‘ 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 rightcolumn. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amountentered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.) Assets Liabilities + stockholders’ Equity + Accounts . Accounts Common+ = +Cash R c i ll Equipment Payable Stock Retalned Earnings Revenues - Expenses
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