Answer:
1. Issued common stock to investors in exchange for cash received from investors - There is an increase in cash because cash(asset) and increase in common stock(stockholder's equity)
2. Paid monthly rent - Decrease in cash(asset) and decrease in rent expense (liability)
3. Received cash from customers when service was performed - Increase in cash(asset) and increase in service revenue(asset)
4. Billed customers for services performed - increase in accounts receivable and increase in service revenue
5. Paid dividend to stockholders -
Decrease in cash and decrease in dividend
6. Incurred advertising expense on account - Decrease in advertising expense and increase in accounts payable
7. Received cash from customers billed in (4) - Increase in cash and decrease in accounts receivable
8. Purchased additional equipment for cash - increase in equipment and decrease in cash
Explanation:
1. Issued common stock to investors in exchange for cash received from investors - There is an increase in cash because cash(asset) and increase in common stock(stockholder's equity)
2. Paid monthly rent - Decrease in cash(asset) and decrease in rent expense (liability)
3. Received cash from customers when service was performed - Increase in cash(asset) and increase in service revenue(asset)
4. Billed customers for services performed - increase in accounts receivable and increase in service revenue
5. Paid dividend to stockholders -
Decrease in cash and decrease in dividend
6. Incurred advertising expense on account - Decrease in advertising expense and increase in accounts payable
7. Received cash from customers billed in (4) - Increase in cash and decrease in accounts receivable
8. Purchased additional equipment for cash - increase in equipment and decrease in cash
