Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the

Question

Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the accounting equation. After doing so for all transactions, ensure that the accounting equation remains in balance. The first item is provided as an example. Transaction Assets = Liabilities + Stockholders' Equity 1. Provide services to customers on account, $1,640. $1,640 $0 $1,640 2. Pay $380 for current month's rent. 3. Hire a new employee, who will be paid $540 at the end of each month. 4. Pay $100 for advertising aired in the current period. 5. Purchase office supplies for $380 cash. 6. Receive cash of $1,040 from customers in (1) above. 7. Obtain a loan from the bank for $7,400. 8 Receive a bill of $530 for utility costs in the current period. 9. Issue common stock for $10,400 cash. 10. Pay $540 to employee in (3) above. Totals

Help In Homework · Accepted Answer

Particulars Assets Liabilities Stockholders' equity Services to customers 1,640 - 1,640 Current month rent (380) - (380) New employee - 540 (540) Advertising (100) - (100) Office supplies 380 - - (380) - - Received cash (1,040) - - 1,040 - - Obtained loan 7,400 - 7,400 Utility costs - 530 (530) Common stock issued 10,400 10,400 Payment to employee (540) (540) - In case of any doubt or clarification, feel free to come back via comments.

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Below is a list of activities for Purple Cow Incorporated

Expert Solution

Archived Solution

	Transaction	Assets	=	Liabilities	+	Stockholders' Equity
1.	Provide services to customers on account, $1,640.	$1,640		$0		$1,640
2.	Pay $380 for current month's rent.
3.	Hire a new employee, who will be paid $540 at the end of each month.
4.	Pay $100 for advertising aired in the current period.
5.	Purchase office supplies for $380 cash.
6.	Receive cash of $1,040 from customers in (1) above.
7.	Obtain a loan from the bank for $7,400.
8	Receive a bill of $530 for utility costs in the current period.
9.	Issue common stock for $10,400 cash.
10.	Pay $540 to employee in (3) above.
	Totals

Particulars	Assets	Liabilities	Stockholders' equity
Services to customers	1,640	-	1,640
Current month rent	(380)	-	(380)
New employee	-	540	(540)
Advertising	(100)	-	(100)
Office supplies	380	-	-
	(380)	-	-
Received cash	(1,040)	-	-
	1,040	-	-
Obtained loan	7,400	-	7,400
Utility costs	-	530	(530)
Common stock issued	10,400		10,400
Payment to employee	(540)	(540)	-