Purpose of Assignment

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

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making

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.

Use the Excel^® spreadsheet to record your answers and submit with your responses.