a Analyze each of the following transactions in terms of the

a) Analyze each of the following transactions in terms of their effects on the accounting equation for McGuire Corporation. To do this, create a table with the following gs: Cash, Equipment, Accounts Receivable, Service Revenue, Repair Expense Notes Payable, Common Stock, Dividends. Use additions and Accounts Payable,I subtractions to show the effects of each transaction on the accounts in the accounting equation. (14 points) The financial transactions of McGuire Corporation for the month of May, t month of operations, are as follow: heir first 1. On May 1, 2019, McGuire Corporation issued common stock in exchange for $30,000 cash from a stockholder, Deborah Merchant. 2. On May 3, the corporation purchased $14,000 of equipment for cash. 3. On May 7, the corporation borrowed $6,000 from a creditor and executed a note 4. On May 8, the corporation provided service to a new client in the amount of 5. On May 12, McGuire Corporation provided service to a client and received 6. On May 18, the corporation incurred a repair expense of $2,000 and promised to 7. At the end of May, McGuire Corporation distributed cash dividends of $1,700. payable with the principal and interest to be due in one year. $9,000 on account, as the client promised to pay the following month. $4,000 in cash. pay the repair contractor the following month.

Solution

Part 1 - Accounting Equation Formation

Assets = Liabilities + Equity

Part 2 - Income Statement

McGuire Corporation

Income Statement

For the month of may

Part 3 - Statement of retained earnings

McGuire Corporation

For the month of May

Part 4 - Balance Sheet

Mcguire Corporation

Particulars

Cash

Equipment

Accounts Receivable

Service Revenue

Repair expenses

Accounts Payable

Notes Payable

Common stock

Dividend

May 1, 2019

+$30000

+$30000

May 3, 2019

-$14000

+$14000

May 7, 2013

+$6000

+$6000

May 8, 2013

+$9000

+$9000

May 12, 2013

+$4000

+$4000

May 18, 2013

+$2000

+$2000

At the end of May

-$1700

+$1700

Total amount

$24300

$14000

$9000

$13000

$2000

$2000

$6000

$3000

$1700