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.

---

Definitions:

Kyphosis

A spinal disorder causing a forward rounding of the back, which may lead to a hunchback posture.

Symphysis

A type of joint in which the bones are joined by fibrocartilage, allowing for slight movement, such as the pubic symphysis.

Lumbodynia

Pain experienced in the lumbar region of the back, often related to disorders or strain of the lower back muscles or vertebrae.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.