The Following Events Occurred for Ringgold Company During Year 1

question 194

Essay

The following events occurred for Ringgold Company during Year 1, its first year of operations:Issued stock to investors for $45,000 cashBorrowed $25,000 cash from the local bankProvided services to its customers and received $32,000 cashPaid expenses of $28,000Paid $22,000 cash for landPaid dividend of $12,000 to stockholdersRepaid $10,000 of the loan listed in item 2Required:Show the effects of the above transactions on the accounting equation, below. Include dollar amounts of increases and decreases. Enter NA for items not affected. If one section is affected by an increase and also a decrease, enter each part on a separate line.The first event is done for you. After entering all the events, calculate the total amounts of assets, liabilities, and stockholders' equity at the end of the year.
$\begin{array}{lrrrr}\text { Event number } & \text { Assets } & = & \text { Liabilities } & \text { SH Equity } \\1 . & 45,000 && \text { NA } & 45,000\\2.\\3.\\4.\\5.\\6.\\7.\\\text{Total}\end{array}$