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During 2012, Gavin Corp. entered into the following transactions.
1. Borrowed $60,000 by issuing bonds.
2. Paid $9,000 cash dividend to stockholders.
3. Received $13,000 cash from a previously billed customer for services provided.
4. Purchased supplies on account for $3,100.
Using the following tabular analysis, show the effect of 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. Use Illustration 3-3 (page 110) as a model.
Assets
= Liabilities
+ Stockholders" Equity
Cash
Accounts +Receivable
+Supplies
Accounts =Payable
Bonds +Payable
Common +Stock
Retained +Earnings
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