Porter Company Experienced the Following Events During the Year

question 114

Essay

Porter Company experienced the following events during the year:
1.Acquired $40,000 cash by issuing common stock
2.Borrowed $10,000 cash from a creditor
3.Provided services to customers for $25,000 cash
4.Paid $18,000 cash for operating expenses
5.Paid a cash dividend of $1,000 to stockholders
6.Purchased equipment with cash,$6,000
Required:
a)Show how each of these events affects the accounting equation.Show amounts and increases or decreases,using + for increases and - for decreases and NA for no effect.The first event is done as an example.
b)Calculate the total amount of assets,liabilities,common stock,and retained earnings at the end of the period.

---

Definitions:

More Equal

A phrase describing a reduction in disparities or inequalities, typically in contexts related to income, wealth, or opportunities.

Wealth Distribution

The manner in which wealth is distributed among the individuals in a society.

Income Inequality

Income inequality describes the extent to which income is distributed unevenly among a population.

Unequally Distributed

Refers to an unequal allocation or distribution of resources, wealth, or opportunities among different individuals or groups.