Reference no: EM131592291

Purpose of Assignment - The purpose of this assignment is to help you become familiar with examining transactions and how it affects the balance sheet.

Write a minimum 150-word response to each of the following scenarios from Exercise E3-1 in Financial Accounting(p. 132) describing the effect of each transaction on assets, liabilities, and stockholder's equity:

• Selected transactions for Thyme Advertising Company, Inc.
• Issued common stock to investors in exchange for cash received from investors.
• Paid monthly rent.
• Received cash from customers when service was performed.
• Billed customers for services performed.
• Paid dividend to stockholders.
• Incurred advertising expense on account.
• Received cash from customers billed in (4).
• Purchased additional equipment for cash.
• Purchased equipment on account.