The following transactions occur for Badger Biking Company during the month of June:

(a) Provide services to customers on account for $50,000.

(b) Receive cash of $42,000 from customers in (a) above.

(c) Purchase bike equipment by signing a note with the bank for $35,000.

(d) Pay utilities of $5,000 for the current month.

Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Assets = Liabilities + Stockholder's equity

Question

Business

Nia

3 October, 22:52

The following transactions occur for Badger Biking Company during the month of June:

(a) Provide services to customers on account for $50,000.

(b) Receive cash of $42,000 from customers in (a) above.

(c) Purchase bike equipment by signing a note with the bank for $35,000.

(d) Pay utilities of $5,000 for the current month.

Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Assets = Liabilities + Stockholder's equity

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Answers (1)

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Claudia Odonnell · Answer 1

Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Assets = Liabilities + Stockholder's equity

Explanation:

(a) Provide services to customers on account for $50,000.

Account receivable=equity (net income (revenue)

50000=50000

(b) Receive cash of $42,000 from customers in (a) above.

Cash = - (account receivable)

(c) Purchase bike equipment by signing a note with the bank for $35,000.

equipment=account payable

(d) Pay utilities of $5,000 for the current month.

-cash=-equity (expenses)