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.

Question

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The Answer of 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.

Porter Company Experienced the Following Events During the Year