Ramirez Company experienced the following events during Year 1:
Acquired $50,000 cash by issuing common stock
Borrowed $25,000 cash from a creditor
Provided services to customers for $38,000 cash
Paid $32,000 cash for operating expenses
Paid a cash dividend of $2,500 to stockholders
Purchased land with cash, $30,000
Required:
Show how each of these events affects the accounting equation. Enter NA for items not affected. The first event is done as an example.
Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.