The Campbell Company Began Operations on January 1, Year 1

Essay

The Campbell Company began operations on January 1, Year 1 and on that date issued $60,000 of common stock for cash. In addition, the company borrowed $40,000 from the bank. It provided services to its customers during Year 1 and received $72,000 cash. During the year, it paid $80,000 cash for land, $50,000 for salaries, and $10,000 in cash dividends to the stockholders.
Required: Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements.) Enter 0 for items not affected.Prepare an income statement and a balance sheet for the Year 1 accounting period.