Describe the dual effect on the accounting equation

Reference no: EM131519603

Question: Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions.

1. Issue 10,000 shares of common stock in exchange for $32,000 in cash.

2. Purchase land for $19,000. A note payable is signed for the full amount.

3. Purchase storage container equipment for $8,000.

4. Hire three employees for $2,000 per month.

5. Receive cash of $12,000 in rental fees for the current month.

6. Purchase office supplies for $2,000 on account.

7. Pay employees $6,000 for the first month's salaries.

Required: 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.

Reference no: EM131519603

Questions Cloud

Define what is meant by the lifetime of a variable : CSC3403 Comparative Programming Languages Assignment. Define what is meant by the lifetime of a variable. What is a type error

Discuss past actions and terroristic endeavors : Discuss past actions and terroristic endeavors. Discuss the present areas of operation, believed actions, and current status of the organization.

Determine the sensitivity of the NPV to the inputs : The company’s discount rate is10%. Determine the sensitivity of the NPV to the following inputs

Switching to local suppliers in the uk : On the one hand, you are considering switching to local suppliers in the UK. On the other hand, you feel bad about abandoning your Asian suppliers.

Describe the dual effect on the accounting equation : Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions.

Write program calculates annual compensation of salesperson : Write a Java application using NetBeans Integrated Development Environment (IDE) that calculates the total annual compensation of a salesperson.

Asymmetric information problem : Given an asymmetric information problem, how could a venture capital firm protect its equity investment from it?

Assume interest is determined only at the end of each year : Assume the interest is determined only at the end of each year.

Analyze each transaction : Below are the external transactions for Shockers Incorporated.

User Account

All Pages