The Transactions Listed Below Apply to Lovell Company for Its

question 227

Essay

The transactions listed below apply to Lovell Company for its first year in business. Assume that all transactions involve the receipt or payment of cash.
Transactions for the year 2012:
1) Issued common stock to investors for $15,000 cash.
2) Borrowed $8,000 from the local bank.
3) Provided services to customers for $18,000.
4) Paid expenses amounting to $11,400.
5) Purchased a plot of land costing $12,000.
6) Paid a dividend of $6,000 to its stockholders.
7) Repaid $4,000 of the loan listed in item 2.
Required:
(a) Fill in the headings to the accounting equation shown below.
(b) Show the effects of the above transactions on the accounting equation.

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Definitions:

Electrical Polarization

The phenomenon where in a material, or in the particles of the material, there is a separation of charge leading to one part becoming more positively charged and another part more negatively charged.

Synaptic Vesicles

Membrane-bound sacs in the synapse that store neurotransmitters and release them into the synaptic cleft to transmit neural signals between neurons.

Action Potential

A temporary reversal in the electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.

Threshold

The minimum level of stimulus intensity required to activate a sensory system or produce a response in a physiological or psychological system.