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29 April, 10:52

Windsor, Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $1,850 cash. 16 Receives $400 from clients for services performed. 27 Pays secretary $1,760 salary.

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  1. 29 April, 14:48
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    a) the accounting equations keeps equals

    b) in the explanation at the bottom

    Explanation:

    Agu 1.

    a) the effect on the accounting equation

    1. Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock.

    the asset keeps the same

    Pays insurance in advance for 6 months, $1,850 cash

    the asset keeps the same

    Receives $400 from clients for services performed

    the asset increase because the cash increase + $400 and the accounts receivable decreased

    Pays secretary $1,760 salary.

    The cash decrease because paid - $1,760 and the account of the salaries to pay decrease - $1.760

    b) the debit-credit analysis

    debit credit

    Cash - $4.100 assets account

    investing + 4100 assets account

    Cash - $1.850 assets account

    Pays insurance + 1.850 assets account

    Cash + 400 assets account

    Acc receivable - 400 assets account

    cash - 1.760 assets account

    wages to pay - 1.760 liabilities account
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