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The document contains an accounting problem for Crane Company's transactions in May 2025. Here's a summary of the task and instructions provided:

**Scenario:**
Crane Company has recorded the following transactions during May 2025, its first month of operations. You are asked to show how these transactions affect the accounting equation (Assets = Liabilities + Stockholders' Equity). The changes need to be recorded in a tabular format, indicating how each transaction impacts Cash, Accounts Receivable, Equipment, Accounts Payable, and any other accounts. For any decreases in the accounts, a negative sign is to be used.

**Transactions:**
1. Stockholders invested $32,000 in exchange for common stock.
2. Purchased computers worth $26,600 on account.
3. Paid $5,500 cash for May rent.
4. Performed computer services worth $18,400 on account.
5. Performed computer services for $5,300 cash.
6. Paid $8,500 cash for energy usage.
7. Paid for the computers purchased in transaction (2).
8. Incurred advertising expense of $1,800 on account.
9. Received $10,200 cash from customers for contracts billed in transaction (4).

Would you like assistance in filling out the accounting equation based on these transactions?

Here are five related questions to expand your understanding:
1. How do you account for depreciation in a similar scenario?
2. What is the impact on equity when receiving stockholder investments?
3. How does paying off liabilities affect the balance sheet?
4. Can accounts payable impact stockholders' equity?
5. How are unearned revenues treated in this type of analysis?

**Tip:** When dealing with accounting equations, always ensure that assets equal liabilities plus equity after every transaction.

Crane Company entered into several transactions during May 2025, its first month of operations. How do these transactions affect the accounting equation (Assets = Liabilities + Stockholders' Equity)? The transactions include investments, equipment purchases, service performance, and payment of expenses.

Analyze how the accounting equation (Assets = Liabilities + Stockholders' Equity) is impacted by Crane Company's transactions during its first month of operations in May 2025. Transactions include stockholder investments, equipment purchases, service performance, and expenses. This example covers fundamental accounting concepts suitable for college-level accounting students.

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