delmont company entered into these transactions during may 2012 534327

Delmont Company entered into these transactions during May 2012.

1. Purchased computers for office use for $30,000 from Dell on account.

2. Paid $4,000 cash for May rent on storage space.

3. Received $12,000 cash from customers for contracts billed in April.

4. Provided computer services to Lawton Construction Company for $5,000 cash.

5. Paid Southern States Power Co. $8,000 cash for energy usage in May.

6. Stockholders invested an additional $40,000 in the business in exchange for common stock of the company.

7. Paid Dell for the computers purchased in (1).

8. Incurred advertising expense for May of $1,300 on account.

Instructions

Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders” Equity in the right-hand margin. Use Illustration 3-3 (page 110) as a model.