During 2014, Damon Corp. entered into the following transactions.

During 2014, Damon Corp. entered into the following transactions.

1.		Borrowed $61,450 by issuing bonds.
2.		Paid $9,370 cash dividend to stockholders.
3.		Received $11,780 cash from a previously billed customer for services performed.
4.		Purchased supplies on account for $3,020.

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. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)

Assets

=

Liabilities

+

Stockholders’ Equity

Cash

+

Accounts Receivable

+

Supplies

=

Accounts Payable

+

Bonds Payable

+

Common Stock

+

Retained Earnings

(1)

$

$

$

$

$

$

$

(2)

(3)

(4)

Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on assets, liabilities, and stockholders’ equity.

				Assets		Liabilities		Stockholders’ Equity
(a)		Purchased supplies on account.		Decreased Increased No Effect		Decreased No Effect Increased		Decreased Increased No Effect
(b)		Received cash for providing a service.		Decreased No Effect Increased		Decreased Increased No Effect		No Effect Increased Decreased
(c)		Expenses paid in cash.		No Effect Increased Decreased		No Effect Decreased Increased		Decreased No Effect Increased