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The following transactions were completed by the company.

a. The company completed consulting work for a client and immediately collected $6,300 cash earned.
b. The company completed commission work for a client and sent a bill for $4,800 to be received within 30 days.
c. The company paid an assistant $1,800 cash as wages for the period.
d. The company collected $2,400 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $860 cash for this period's cleaning services.

Required:
Write down the impact of each transaction on individual items of the accounting equation.

Respuesta :

jepessoa

Answer:

Since there is not enough room here, I used an excel spreadsheet to answer the question.

Assets increased by $8,440

Stockholders' equity increased by $8,440

Revenues increased by $8,440

Cash flows increased by $6,040

Explanation:

The accounting equation: Assets = Liabilities + Stockholders' Equity, basically represents how the double entry accounting system works. One side (assets) must always be equal to the other side (liabilities + stockholders' equity).

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