Reference no: EM132380615

Question

Fruity Farms was incorporated as a private company on January 1, 2017. The company's accounts included the following at January 31, 2017:

Accounts Payable$20,000 Land$100,000 Building 50,000 Notes Payable, due 2019 22,000 Bank Overdraft 9,000 Retained Earnings 74,000 Contributed Capital 75,000 Supplies 3,000 Equipment 47,000

During the month of February, the company had the following activities:

Paid a dividend to shareholders of $15,000.

Repaid $10,000 cash to a local bank.

Issued 500 shares for $50,000 cash.

Purchased equipment for $30,000, paying $3,000 in cash and signing a note due in six months for the balance.

Purchased supplies for $3,000 on account.

Required:

Analyze transactions (a)-(e) to determine their effects on the accounting equation.