Accounting Equations

Ending Stockholders' equity=

Beginning stockholders' equity + change in stockholders' equity

Issuance of stock=

Change in stockholders' equity - net income + dividends

Simmons Company pays money for insurance in advance of using the insurance, $9,200.

Individual asset accounts - increase, decrease no change- individual liability accounts, capital stock, retained earnings

Change in stockholders' equity =

Insurance of stock + net income- dividends

Increase in stockholders' equity=

Insurance of stock+ revenue-expenses- dividends

Assets =

Liabilities+ Stockholders' Equity

Lewis Company sends invoices to all clients for services rendered for a total of $2,900.

increase - individual asset accounts, retained earnings no change - individual liability accounts, capital stock

Change in stockholders' equity equation =

Ending stockholders' equity - beginning stockholders' equity

beginning stockholder's equity

Ending stockholders' equity = Beginning stockholders' equity + Change in stockholders' equity Change in stockholders' equity = Issuance of stock + Net income - Dividends Beginning stockholders' equity = Ending stockholders' equity - Change in stockholders' equity

Wright Company receives money from customers who have been previously billed, on account, $6,850.

INCREASE AND decrease in Individual asset accounts no change - individual liability accounts, capital stock, retained earnings

Stewart Company receives money in advance of performing the service, $6,200

Increase - individual asset accounts, individual liability accounts capital stock, retained earnings - no change

Thompson Company receives money in advance of performing the service, $7,500.

Increase - individual asset accounts, individual liability accounts no change - retained earnings, capital stock

Richardson Company issues stock to new investors, $27,000.

Increase- individual asset accounts, increase no change - individual liability accounts, retained earnings