The Transactions Listed Below Apply to Lovell Company for Its

question 42

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:

Individuals

Refers to single human beings, as opposed to groups or collectives, emphasizing the uniqueness and autonomy of each person.

High School Graduation

The act of successfully completing the required coursework and other state or local requirements at the secondary education level, leading to the receipt of a diploma.

Agency

The capacity of individuals to act independently and make their own free choices, contrasted with social structure.

Structure

An arrangement or organization of parts, elements, or constituents that form a complex system.