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.

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Definitions:

Iron-rich foods

Foods that are a high source of iron, a vital mineral for the body, important for producing hemoglobin and preventing anemia.

Speed Dating

An organized social event where individuals have a series of short conversations with potential romantic partners to determine mutual interest.

Matchmaking Gathering

An event or meeting organized with the purpose of facilitating romantic introductions between individuals looking to form a relationship.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone.