The Campbell Company began operations on January 1,2015 and on that date issued $60,000 of common stock for cash.In addition,the company borrowed $40,000 from the bank.It provided services to its customers during 2015 and received $72,000 cash.During the year,it paid $80,000 cash for land,$50,000 for salaries,and $10,000 in cash dividends to the owners.
Required:
1)Write an accounting equation and record the effects of each transaction under the appropriate heading.(Use specific accounting titles below the statement elements. )Precede the amount with a minus sign if the transaction reduces that section of the equation.
Enter 0 for items not affected.
2)Prepare an income statement and a balance sheet for the 2015 accounting period.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

Question

Quizplus · Accepted Answer

The Answer of The Campbell Company began operations on January 1,2015 and on that date issued $60,000 of common stock for cash.In addition,the company borrowed $40,000 from the bank.It provided services to its customers during 2015 and received $72,000 cash.During the year,it paid $80,000 cash for land,$50,000 for salaries,and $10,000 in cash dividends to the owners.
Required:
1)Write an accounting equation and record the effects of each transaction under the appropriate heading.(Use specific accounting titles below the statement elements. )Precede the amount with a minus sign if the transaction reduces that section of the equation.
Enter 0 for items not affected.
2)Prepare an income statement and a balance sheet for the 2015 accounting period.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

The Campbell Company Began Operations on January 1,2015 and on That