E3-4

Transaction 1: +20,000 cash, +20,000 common stock.
Description- A $20,000 dollar deposit was made increasing our assets by 20,000; since Assets = Liabilities + Stockholder’s equity and common stock falls under Stockholder’s equity, common stock is increased by 20,000.

Transaction 2: - 1,000 cash, + 5,000 equip., +4,000 accounts payable
Description- A 1,000 dollar deposit is made on and equipment purchase subtracting 1,000 cash from Nigel’s assets. The deposit was on a 5,000 piece of equipment adding 5,000 to Nigel’s assets. This leaves 4,000 dollars to add to the accounts payable column. Increasing liabilities by 4,000 and increasing assets by 4,000 (5,000 equip-1,000 cash).

Transaction 3: -750 cash, +750 supplies
Description- A 750 dollar cash withdraw in order to purchase the same amount in necessary supplies. This neither increases or decreases because the withdraw and addition of supplies are made in the asset column.

Transaction 4: +4,100 cash, +5,400 accounts receivable, +9,500 Revenue
Description- A 4,100 dollar cash deposit is made, a collection of 5,400 dollars in accounts receivable is made, this results in a 9,500 dollar revenue increase for Nigel’s stockholder’s equity. Revenue is a service revenue, money resulting in services rendered to client. This increased assets and stockholder’s equity.

Transaction 5: -1,500 cash, -1,500 accounts payable
Description: A 1,500 dollar cash withdraw is made to make payment on accounts payable. This decreases assets but also decreases liabilities.

Transaction 6: -2,000 cash, -2,000 dividends
Description: A 2,000 dollar cash withdraw is made to pay out 2,000 in dividends. This decreases Nigel’s assets and increases stockholder’s equity.

Transaction 7: -8,00 cash, -800 Expenses( rent)
Description: An 8,00 dollar cash withdraw is made to make a rental expense payment decreasing assets