Pharoah Company entered into these transactions during May 2017, its first month of operations. 1. Stockholders invested $44,500 in the business in exchange for common stock of the company
2. Purchased computers for office use for $27,600 from Ladd on account.
3. Paid $5,600 cash for May rent on storage space.
4. Performed computer services worth $18,700 on account.
5. Performed computer services for Wharton Construction Company for $3,800 cash.
6. Paid Western States Power Co. $6,200 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $2,000 on account.
9. Received $10,100 cash from customers for contracts billed in (4).
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' 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 3-3 for example.)

The table is inserted below:

Please find the attachment

Explanation:

For the equation inserted in table for each line item here is the explanation:

1. When stockholders invest, cash comes in the business which is an asset and also stockholder's equity increases as common stock is issued to them.

2. Purchase of computers is purchase of an asset, accordingly, assets shall increase. Since it is purchased on account it shall be an increase in liability also with the same amount.

3. When expense is paid in cash it reduces cash available in hand that is decrease in assets, further an expense will decrease profits and reserves accordingly, decrease in stockholder's equity.

4. When services are provided it will create revenue which is part of stockholder's equity as it comprises retained earnings, and profits.

Also since cash is not received and it is on account, debtors will increase, accordingly, assets will increase by the same amount.  

5. Services done will increase income accordingly, stockholder's equity shall increase. Also, it is done for cash, increase in cash will increase in assets.

6. Paid cash will decrease assets, and since it is an expense it will decrease profits and accordingly, stockholder's equity will decrease.

7. Payment of a creditor will decrease the liabilities and cash, accordingly liabilities decrease and there is decrease in assets by the same amount.

8. Expense will increase liability as incurred on account accordingly creditors will increase.

Further it will decrease profits and accordingly there will be decrease in stockholder's equity.

9. Cash received from debtors will decrease debtors and assets will decrease, but cash received will increase assets. Accordingly the effect will be 0.

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