During 2017, Sarasota Corp. entered into the following transactions.

(1) Borrowed $58,100 by issuing a note.

(2) Paid $8,960 cash dividend to stockholders.

(3) Received $14,200 cash from a previously billed customer for services performed.

(4) Purchased supplies on account for $4,200.

Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary.

(1) Borrowings through note:

This will increase cash by $58,100 that is asset,

And this will increase liability in form of notes payable by $58,100

+ Assets ($58,100) = + Liability ($58,100) And No Effect On Equity

(2) Paid Cash Dividend

This will decrease cash by $8,960 that is asset,

And this will decrease retained earnings by $8,960, which is part of equity.

- Assets ($8,960) = Liabilities No effect, - Retained Earnings ($8,960) which is equity.

(3) Cash received from customer

Cash is received, therefore, it will increase by $14,200, which is an asset

Payment is received from customer, which is decrease in accounts receivables, which is asset by $14,200.

Thus, it will increase and decrease asset, therefore, no effect on accounting equation.

(4) Purchased supplies on account

This will increase supplies which are inventory, and therefore, will increase assets by $4,200.

And since purchased on account this will increase liability in the form of accounts payable by $4,200.

+ Assets $4,200 = + Liabilities $4,200, No effect on equity.