Question

1. Transactions made by Carla Vista Co. for the month of March are shown below. The company performed $22,060 of services for customers on account, The company received $22,060 in cash from customers who had been billed for services (in transaction (1)). The company received a bill for $2,670 of advertising but will not pay it until a later date. Carla Vista Co. paid a cash dividend of $5,920. 2. 3. 4. Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation. 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 3-4 for example.) Cash Assets Accounts Receivable + Liabilities Accounts Payable Common Stock $ $ $ (2) (3) (4) es' Straits of.pdf wie

Answer 1

solution: Assets. + Accounts Receivabde. Liabilities. Accounts Payable + Common stock Cash 0 $0 + $ 22,060 + $22,060 $22,060 + - $22,060 $0 + $0 + $0 $2,670 $2,670 + $0 - $5920 + $ $0 - + $5920 $0

Explanation O This increases Account receivables [asset) account by $22,060 and increases the income [Equity] by $22,060 © This increases the Cash Casset) account by $22,060 and decreases the Account receivables [Asset) account by $22,060 3. This increases the cash [asset] account by $2,670 and increases the Account Payable Inability] account by $2,670 ④ This decreases the cash [Asset account by $5,920 and decreases the netauried earnings [Equity] account by $ 5,920