Question

I need help with all of these, even the blanks that currently have numbers in them

The following transactions occur for Badger Biking Company during the month of June a. Provide services to customers on account for $33,000 b. Receive cash of $25,000 from customers in (a) above. c. Purchase bike equipment by signing a note with the bank for $18,000 d. Pay utilities of $3,300 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (Decreases to account classifications should be entered as a negative.) TransactionAssetsLiabilities+ LiabilitiesStockholders' Equity $ 33,000 (b) increase25,000 (b) decrease $ 18,000 $ 3,300

Answer 1

Solution

Transaction	Assets	=	Liabilities	+	Equity
(a) Increase	$     33,000.00				$ 33,000.00
(b) Increase	$     25,000.00
(b) Decrease	$ (25,000.00)
(c ) Increase	$     18,000.00		$   18,000.00
(d) Decrease	$     (3,300.00)				$ (3,300.00)

Working

Transaction	Assets	=	Liabilities	+	Equity	Remark
(a) Increase	$     33,000.00				$ 33,000.00	Revenue increases equity and accounts receivables increase assets
(b) Increase	$     25,000.00					Increase of cash increase asset
(b) Decrease	$ (25,000.00)					Decrease in accounts receivables decrease assets
(c ) Increase	$     18,000.00		$   18,000.00			Liability for notes payable and bike equipment increase asset.
(d) Decrease	$     (3,300.00)				$ (3,300.00)	Expense decrease equity balance and payment of expense in cash decreases cash balance