Maggie Stern started a consulting business, Stern Consulting, on January 1, Year 1 by issuing $9,000 of common stock. In addition, the following events occurred in Year 1:Provided services on account, $27,500Paid cash for $13,500 in operating expensesCollected $11,000 of the revenue that was previously recorded on accountPaid a cash dividend of $5,000 to the stockholdersRequired:Show the effects of the above transactions on the accounting equation.

Question

Quizplus · Accepted Answer

The Answer of Maggie Stern started a consulting business, Stern Consulting, on January 1, Year 1 by issuing $9,000 of common stock. In addition, the following events occurred in Year 1:Provided services on account, $27,500Paid cash for $13,500 in operating expensesCollected $11,000 of the revenue that was previously recorded on accountPaid a cash dividend of $5,000 to the stockholdersRequired:Show the effects of the above transactions on the accounting equation.

Maggie Stern Started a Consulting Business, Stern Consulting, on January