Question

During 2022, its first year of operations as a delivery service, Indigo Corporation entered into the following transactions.

Answer 1

Answer:

Indigo Corporation

                                      Assets =   Liabilities  + Stockholders' Equity

1. Cash                         $150,000

 Common Stock                                                     $150,000

2. Cash                         $40,000

Bonds Payable                                 $40,000

3. Delivery trucks        $55,000

Cash                           ($55,000)

4. Cash                         $17,000

Accounts Receivable ($17,000)

5. Supplies                   $6,700

Accounts Payable                             $6,700

6. Cash                        ($4,200)                             ($4,200) Rent expense

7. Accounts Receivable 11,700                                $11,700 Service revenue

8. Cash                      ($26,800)                           ($26,800) Salaries exp.

9. Cash                       ($11,200)                             ($11,200) Dividends

Assets                      $166,200  =   $46,700   +   $119,500

Explanation:

a) Data and Analysis (Accounting Equation Effect):

1. Cash $150,000 Common Stock $150,000

2. Cash $40,000 Bonds Payable $40,000

3. Delivery trucks $55,000 Cash $55,000

4. Cash $17,000 Accounts Receivable $17,000

5. Supplies $6,700 Accounts Payable $6,700

6. Cash ($4,200) Rent Expense ($4,200)

7. Accounts Receivable $11,700 Service Revenue $11,700

8. Cash ($26,800) Salaries ($26,800)

9. Cash ($11,200) Dividends ($11,200)