Question

The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $7,200 cash earned. b. The company completed commission work for a client and sent a bill for $5,700 to be received within 30 days. c. The company paid an assistant $2,250 cash as wages for the period. d. The company collected $2,850 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $1,040 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 = + Cash Accounts Receivable Liabilities Accounts Payable Equity Owner, Revenue Withdrawals Owner, Capital - Expenses $ 6,200 + + + $ + + + a. b. Bal. C. Bal. = = 6,200 0 + 0 - + + + + + 4,700 4,700 (2,350) 2,350 2,350 4,700 6,200 + + 0 - + d. + = = = + + Bal. + + (1,750) 4,450 + (840) + 3,610 + + + Bal. 4,700 = 0 + + +

Answer 1

	Cash	+	Accounts Receivable	=	Accounts Payable	+	Owner Capital	-	Owner Withdrawals	+	Revenue	-	Expense
a.	$7,200	+	0	=	0	+	0	-	0	+	$7,200	-	0
b.	0	+	$5,700	=	0	+	0	-	0	+	$5,700	-	0
Bal.	$7,200	+	$5,700	=	0	+	0	-	0	+	$12,900	-	0
c.	-$2,250	+	0	=	0	+	0	-	0	+	0	-	$2,250
Bal.	$4,950	+	$5,700	=	0	+	0	-	0	+	$12,900	-	$2,250
d.	$2,850	+	-$2,850	=	0	+	0	-	0	+	0	-	0
Bal.	$7,800	+	$2,850	=	0	+	0	-	0	+	$12,900	-	$2,250
e.	-$1,040	+	0	=	0	+	0	-	0	+	0	-	$1,040
Bal.	$6,760	+	$2,850	=	0	+	0	-	0	+	$12,900	-	$3,290