Question

Following the example shown in (a) below, indicate the effects of the listed transactions on assets, liabilities, and stockholders' equity of John Dallmus, certified public accountant, a corporation:

Transaction Accounting effects a. Purchased, for cash, a desktop computer for use in the office ✓ b. Rendered accounting services and billed the client. Decrease assets, decrease liabilities Decrease assets, decrease stockholders' equity C. Paid utilities for the month. Increase assets, increase liabilities d. Rendered tax services to a client for cash. Increase assets, increase stockholders' equity e. Received amount due from a client in Transaction (b.) Increase one asset, decrease another asset f. Purchased a copying machine on account. g. Paid employees' salaries for the month. h. Paid for copying machine purchased in Transaction (1) 1. the company paid a dividend.

Answer 1

Transaction	Accounting effects
a.	Increase one asset, decrease another asset
b.	Increase assets, increase stockholder's equity
c.	Decrease assets, decrease stockholders equity
d.	Increase assets, increase stockholders equity
e.	Increase one asset,decrease another asset
f.	Increase assets, increase liabilities
g.	Decrease assets, decrease stockholder's equity
h.	Decrease assets, decrease liabilities
i.	Decrease assets, decrease stockholder's equity