Ask Question
BusinessBusiness
13 April, 04:23

Bright Eyes Downtown Diner received a bill of $600 from the White Wine Advertising Agency. The owner, A. A. Bondy, is postponing payment of the bill until a later date. The effect of this transaction on the basic accounting equation is

+1
Answers (1)
  1. 13 April, 05:30
    0
    Asset = Equity + Liability

    No Effect = Reduces + Increased

    $0 = (-$600) + (+$600)

    Explanation:

    Accounting Equation

    Asset = Equity + Liability

    As bill received against the advertisement services received from the White Wine Advertising Agency. This transaction will be recorded as follows

    Dr. Advertisement Expense $600

    Cr. Account Payable $600

    The expense entry will increase the operating expenses of the company and decrease the Net income which ultimately reduce the Equity value.

    On the other hand the credit entry will create an additional liability for the business. This will increase the Liability.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Bright Eyes Downtown Diner received a bill of $600 from the White Wine Advertising Agency. The owner, A. A. Bondy, is postponing payment of ...” 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
You Might be Interested in
What can you expect as a result of your job design strategy? Check all that apply. (A) An initial increase in employee stimulation (B) Increased long-term employee satisfaction (C) Increased worker autonomy (D) Increased flexibility when scheduling
Answers (1)
Efficiency in a market occurs when the production of the good is such that the marginal cost stops increasing. marginal benefit equals marginal cost. marginal benefit exceeds marginal cost by the maximum amount possible.
Answers (1)
Ashley enters a formula in a cell in a spreadsheet and presses enter but instead of the answer, she sees b2 b3/c5. what mistake did she make? she can't add and divide in the same formula. she forgot to start with the equals sign.
Answers (1)
Suppose that borrowing is restricted so that the zero-beta version of the capm holds. the expected return on the market portfolio is 17%, and on the zero-beta portfolio it is 5%. what is the expected return on a portfolio with a beta of 0.7?
Answers (1)
Who questions silo-thinking or narrow-thinking in organizations? A. Leaders B. Supervisors C. Entrepreneurs D. Managers
Answers (2)
New Questions in Business
The firm Patrick started nearly a decade ago is commonly referred to as a market leader. Upon reflecting on the leadership status of his company, Patrick considered the qualities that could eventually bring a firm to a leading position in the
Answers (1)
Divine Apparel has 2,600 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Answers (1)
When considering time management techniques, it is important to remember that a. The more techniques used, the better off you will be b. You have to try strategies that don't make sense for your type of work C.
Answers (2)
Because of its sheer size and the volume of products it purchases from its vendors, walmart can dictate the prices it will pay. which of porter's five competitive forces does this represent?
Answers (1)
Buster industries pays weekly salaries of $17,800 on friday for a five-day week ending on that day. the adjusting entry necessary at the end of the fiscal period ending on tuesday is
Answers (1)
Home » Business » Bright Eyes Downtown Diner received a bill of $600 from the White Wine Advertising Agency. The owner, A. A. Bondy, is postponing payment of the bill until a later date. The effect of this transaction on the basic accounting equation is
Sign Up Forgot Password?