A company performed $25,905 of services and received $9,000 in cashwith the remaining amount to be paid in 60 days with no interest. Whatwould the effect of this transaction be on the company's current month-end accounting equation?A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increasein Stockholders' Equity.B. $16,905 increase in Assets; No effect on Liabilities; $16,905 increasein Stockholders' Equity.C. $25,905 increase in Assets; $25,905 increase in Liabilities; No effecton Stockholders' Equity.D. $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905increase in Stockholders' Equity.

The correct answer is:A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in…

Answered: A company performed $25,905 of services…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2SEQ: The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash...

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Similar questions

The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenues) of $8,000. What is the effect of this error on the accounting equation? A. Total assets will exceed total liabilities and stockholders’ equity by $8,000. B. Total assets will be less than total liabilities and stockholders’ equity by $8,000. C. Total assets will exceed total liabilities and stockholders’ equity by $16,000. D. The error will not affect the accounting equation.
For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
Net income and dividends The income statement of a corporation for the month of November indicates a net income of $90,000. During the same period, $100,000 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of $10,000 during the month? Discuss.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a total of $5,000 in dividends and experienced a net loss of $25,000 this year. What is the ending retained earnings balance?
Net income and dividends The income statement for the month of February indicates a net income of 17,500. During the same period, 25,500 in cash dividends were paid. Would it be correct to say that the business incurred a net loss of 8,000 during the month? Discuss.
Please provide correct solution for this general accounting question
What is the amount of change in retained earnings for the year?
Ritter Corporation's accountants prepared the following financial statements for year-end. RITTER CORPORATION Income Statement Revenue Expenses Depreciation. EBT Taxes Net income Dividends 2823 Assets Cash Other current assets Net fixed assets Total assets $ 1,050 720 78 $268 104 $ 156 $ 21 RITTER CORPORATION Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and equity a. Change in cash b. Change in net working capital c. Cash flow from assets 2022 $69 217 675 $ 961 $ 269 8 692 $ 961 2023 $90 270 820 $ 1,180 $ 283 78 827 $ 1,180 a. What is the change in cash during the year 2023. Note: Do not round Intermediate calculations. b. Determine the change in net working capital in 2023. Note: Do not round Intermediate calculations. c. Determine the cash flow generated by the firm's assets during the year 2023. Note: A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations.
Paulson Company had the following on the dates indicated:12/31/18 12/31/17Total assetsTotal liabilities$ 530,00036,000$ 350,00023,000Paulson had no stock transactions in 2018, so the change in stockholders’ equity for 2018 wasdue to net income and dividends. If dividends were $75,000, how much was Paulson’s netincome for 2018? Use the accounting equation and the statement of retained earnings.a. $92,000b. $242,000c. $167,000d. $317,000
What was the amount of net income for the year? General accounting
A company reports the following income statement and balance sheet information for the current year: Net income $638,800 Interest expense 112,730 Average total assets 5,330,000 Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %

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