Qs 1-10 Identifying effects of transactions using accounting equation-Revenues a

Question

Qs 1-10 Identifying effects of transactions using accounting equation-Revenues and Expenses LO P1 The following transactions were completed by the company a. The company completed consulting work for a client and immediately collected $5,700 cash earned b. The company completed commission work for a client and sent a bill for $4,200 to be received within 30 days c. The company paid an assistant $1,500 cash as wages for the period d. The company collected $2,100 cash as a partial payment for the amount owed by the client in transaction b e. The company paid $740 cash for this period's cleaning services Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities+ Equity Common Stock Accounts Accounts Receivable Cash Dividends Revenues Expenses Payable Bal. C. Bal. Bal Bal. S References eBook & Resources Worksheet Difficulty: 2 Medium

Explanation / Answer

Assets = Liabilities + Equity Cash + Accounts Receivable = Accounts Payable + Common Stock - Dividends + Revenues - Expenses a $5,700 $5,700 b $4,200 $4,200 Bal. $5,700 $4,200 $0 $0 $0 $9,900 $0 c -$1,500 $1,500 Bal. $4,200 $4,200 $0 $0 $0 $9,900 $1,500 d $2,100 -$2,100 Bal. $6,300 $2,100 $0 $0 $0 $9,900 $1,500 e -$740 $740 Bal. $5,560 $2,100 $0 $0 $0 $9,900 $2,240

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