Selected transactions for Pharoah Corporation during September 2025, its first month in business, are presented below:
Issued common shares in exchange for $22,400 cash.
Paid $1,680 cash for rent for the month of September.
Purchased equipment for $11,200, paying $2,240 in cash and the balance on account.
Earned $7,840 in revenue, receiving $1,120 cash and $6,720 on account.
Incurred $560 in advertising expense on account.
Paid $3,360 for repairs and maintenance expenses.
Paid $5,600 cash on balance owed for equipment.
Incurred and paid income taxes for the month amounting to $1,040.
Declared and paid a $560 cash dividend.
Pharoah's chart of accounts shows: Cash, Accounts Receivable, Equipment, Accounts Payable, Common Shares, Retained Earnings, Dividends Declared, Service Revenue, Rent Expense, Repairs and Maintenance Expense, Advertising Expense, and Income Tax Expense.
Prepare an equation analysis of the September transactions equation using the following format. (If a transaction causes a decrease in Assets, Liabilities, or Shareholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability, or Equity item that was reduced. See Illustration 3.18 for example.)
Asset
Shareholders' Equity Retained Earnings
Cash
Accounts Receivable
Equipment
Accounts Payable
Common Shares
Revenues
Expenses
Dividends Declared
Sept
Sept.
Sept.
Sept.
Sept. 20
Sept.
Sept
Sept. 30
