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Problem 2d: Transactions, Accounts, and Financial Statements For questions 1-10 Lane Corporation engaged in the following transactions during May. By addition and subtraction, show the effects of the transactions on Lane Corporation's resources and sources of resources. Notice that the first transaction has been processed for you. May 1: Joseph Lane invested $7,000 in the company and received 3,500 shares of $2 par common stock. Sources of Borrowed Resources Liabilities Sources of Sources of Owner Management Invested Generated Resources Resources Stockholders' Equity + $7,000 Resources Assets + $7,000 The company's receipt of cash increased its resources (assets). The company now has $7,000 more resources (cash) than it had before it received the cash. Since the company did not give up any resources to receive the cash, but received the cash from the owner, the company's sources of owner invested resources (common stock) increased by $7,000 Read the description for questions 1-10. 1. May 4: Lane Corporation provided $390 of services to a client who agreed to pay on May 22. Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity + $390 + $390 B) +$390 +$390 c) + $390 + $390 D) + $390 & - $390 E) + $390 - $390 a.A) b.B) c.C) d.D) ee. E) 0.15 points QUESTION 2 Read the description for questions 1-10. 2. May 7: Lane Corporation paid $600 cash for additional supplies. Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity A) + $600 &- $6001 + $600 + $600 c) + $600 + $600 D) + $600 + $600 E) + $600 $600 a. A) b.B) c.) B) e. E) 0.15 points QUESTION 3 Read the description for questions 1-10 3. May 10: Lane Corporation provided $520 of services to a client and received full payment in cash. Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity + $520 - $520 B) + $520 & - $520 C) + $520 $520 D) + $520 + $520 E) + $520 - $520 b. B) Oc. C) 0.15 points QUESTION 4 Read the description for questions 1-10. 4. May 15: Lane Corporation paid $140 to an employee for work done in the first two weeks of May Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities in Stockholders' Equity A) +$140 & - $140 - $140 - $140 - $140 - $140 and also in th D) + $140 $140 $140 - $140 a. A) b.B) c.C) d.D) e. E) B) C) 0.15 points sa QUESTION 5 Read the description for questions 1-10. 5. May 18: Lane Corporation purchased $975 of supplies on account. The supplies will be paid in full by June 18 Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity A) + $975 T + $975 B) + $975 + $975 C) S + $975 - $975 D) + $975 & - 5975 E) + $975 +5975 a A b.B) ) d. D) e. E) QUESTION 6 0.15 points Save A A) Read the description for questions 1-10. 6. May 19: Lane Corporation paid a $225 cash dividend to its owner. Sources of Sources of Sources of Management Borrowed Owner Generated Resources Resources invested Resources Resources Assets Liabilities Stockholders' Equity - $225 -5225 +$225 -5225 - $225 $225 - $225 + $225 -$225 L - $225 . a. A) b.B) oc. C) d.D) e. E) Lac QUESTION 7 0.15 points Sas Read the description for questions 1-10. 7. May 22: Lane Corporation received full payment from the customer serviced on May 4. (On May 4, Lane Corporation had provided $390 of services to a client who agreed to pay on May 22.) Sources of Sources of Owner Management Invested Generated Resources Resources Stockholders' Equity + $390 - $390 O Sources of Borrowed Resources Resources Assets Liabilities A) +$390 B) | + $390 C) +$390 + $390 D) + $390 8 - 5390NNSEN E) + $390 a. A) b. B) c. C) d. D) e E) 7 I ANNANANA + S2 390 PE 0.15 points QUESTION 8 Read the description for questions 1-10. 8. May 25: Lane Corporation provided $375 of services to a client who agreed to pay on June 25. Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity A) +$375 & - $375 B) + $375 + $375 C) +$375 + $375 D) +$375 + $375 +$375 E) +$375 + $375 a. A) b.B) c. C) d.D) e. E) 0.15 poin QUESTION 9 Read the description for questions 1-10 9. May 28: Lane Corporation paid $500 as partial payment for the supplies purchased on May 18. (On May 18, Lane Corporation had purchased $975 of supplies on account.) Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources Assets Liabilities Stockholders' Equity A) + $500 & - $500 B) - $500 - $500 | C) + $500 + $500 D) - $500 - $500 | E) - $500 + $500 a. A) bB) cC) d D) E) S S 0.15 points Save Ans QUESTION 10 Read the description for questions 1-10. 10. May 31: A review of supplies revealed that $450 of supplies had been used up by the end of May Sources of Sources of Sources of Owner Management Borrowed Invested Generated Resources Resources Resources Resources | Assets Liabilities Stockholders' Equity - $450 - 5450 | + $450 - $450 - $450 $450 D) + $450 & - 5450 E) - 5450 - $450 2.A) b.B) C.C) d.D) e. E)

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