Reference no: EM132149277

Question: During 2014, its first year of operations as a delivery service, Loonie Corp. entered into the following transactions.

1. Issued shares of common stock to investors in exchange for $80,000 in cash.

2. Borrowed $65,000 by issuing bonds.

3. Purchased delivery trucks for $60,000 cash.

4. Received $16,000 from customers for services provided.

5. Purchased supplies for $4,700 on account.

6. Paid rent of $5,200.

7. Performed services on account for $10,000.

8. Paid salaries of $28,000.

9. Paid a dividend of $11,000 to shareholders.

Instructions

Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin. Add up all of the entries to show how Assets = Liab + SE