Question

-10 PM Mon Jan 21 Done Ch. 1- Need-to-Know Videos Help Save & Ext Submit QS 1-10 ldentifying effects of transactions using accounting equation-Revenues and Expenses LO P1 10 The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $5,500 cash eamed b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days c. The company paid an assistant $1,400 cash as wages for the period d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b e. The company paid $700 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 minus sign) ferences Cash Accounts Common Bal <Prev 8of10 Next >

Answer 1

Impact of each transaction on individual items of the accounting equation is as shown below:

	Assets		=	Liabilities	+	Equity
Event Number	Cash +	Account Receivable	=	Accounts Payable		Common Stock -	Dividends +	Revenue	-	Expense
a	5,500		=					5,500	-
b		4,000	=					4,000	-
Bal.	5,500	4,000	=					9,500	-
c.	-1,400		=						-	1,400
Bal.	4,100	4,000	=					9,500	-	1,400
d	1,000	-1,000	=						-
Bal.	5,100	3,000	=					9,500	-	1,400
e.	-700		=						-	700
Bal.	4,400	3,000	=					9,500	-	2,100