Ask Question
23 October, 15:40

The following transactions were completed by the company.

a. The company completed consulting work for a client and immediately collected $6,000 cash earned.

b. The company completed commission work for a client and sent a bill for $4,500 to be received within 30 days.

c. The company paid an assistant $1,650 cash as wages for the period.

d. The company collected $2,250 cash as a partial payment for the amount owed by the client in transaction b.

e. The company paid $800 cash for this period's cleaning services.

Prepare the impact of each transaction on individual items of accounting equation.

+4
Answers (1)
  1. 23 October, 17:24
    0
    a.

    Assets : Increase by $6,000

    Liabilities : No effect

    Equity : Increase by $6,000

    b.

    Assets : Increase by $4,500

    Liabilities : No effect

    Equity: Increase by $4,500

    c.

    Assets : Decrease $1,650

    Liabilities : No effect

    Equity : Decrease $1,650

    d.

    Assets : Increase $2,250, Decrease $2,250

    Liabilities; No effect

    Equity: No effect

    e.

    Assets : Decrease $800

    Liabilities : No effect

    Equity : Decrease $800

    Explanation:

    a.

    Recognize Revenue and Assets of Cash

    b.

    Recognize Revenue and Assets in Trade Receivable

    c.

    Recognize an expense and de-recognize the Assets of Cash

    d.

    Recognize Assets in Cash and de-recognize Assets in Accounts Receivables.

    e.

    Recognize an Expense and de-recognise the Assets in Cash
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers