ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on theaccounting equation?Question content area bottomPart 1А.Assets increase by $20,000 and equity increases by $20,000.В.Assets increase by $20,000 and equity decreases by $20,000.C.Assets increase by $20,000 and liabilities decrease by $20,000.D.The amount of total assets remains the same.

Name: ABC Company earns $20,000 of revenue and collects this amount in cash
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on theaccounting equation?Question content area bottomPart 1А.Assets increase by $20,000 and equity increases by $20,000.В.Assets increase by $20,000 and equit

In this question, we are required to analyse the effect of the following transaction in Assets,…

Business

Accounting

ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.

ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Need Help with this Question with this Question with this Question
Subject: accounting
Balancing the Expanded Accounting Equation Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Liabilities Beginning of Year: $29,000 $15,000 End of Year: $64,000 $28,000 6) If the company issues common stock of $42,300 and pay dividends of $2,100, how much is net income (loss)? Net Income (Loss):
Please do not give solution in image format thanku
Show in Accounting equation form
Don't give answer in image format
Alpha Company has assets of $634,000, llabilities of $267,000, and equity of $367,000. It buys office equipment on credit for $92,000. What would be the effects of this transaction on the accounting equation? O Multiple Choice Assets increase by $92,000 and expenses decrease by $92,000. Liabilities increase by $92,000 and expenses decrease by $92,000. Assets increase by $92,000 and expenses increase by $92,000. Assets increase by $92,000 and liabilities increase by $92,000. Assets decrease by $92,000 and expenses decrease by $92,000.
Saddleback Company paid off $46,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Choice O O Assets decrease $46,000; equity decreases $46,000. Assets decrease $46,000; liabilities decrease $46,000. Assets decrease $46,000; liabilities increase $46,000. Liabilities decrease $46,000; equity increases $46,000. Assets increase $46,000; equity increases $46,000. 11
What is the effect of a company performing services for $8,000 on account? Explain why. a. Net effect is zero because revenues increase and decrease by $8,000 b. Revenues increase by $8,000 and assets increase by $8,000 c. Revenues increase by $8,000 and liabilities increase by $8,000 d. Revenues increase by $8,000 and stockholders’ equity increases by $8,000
Problem 5 Evaluate the following items, and determine the correct amount to report on the income statement for each, using the accrual basis of accounting for the referenced period of time. A Company had beginning accounts receivable of $16,000. The company reported cash basis revenues of $200,000. The ending accounts receivable amounted to $36,000. B Company purchased $50,000 of supplies. Supplies on hand decreased by $10,000 during the period. C Company started the year with no prepaid rent, and ended the year with $2,000 in prepaid rent. Rent expense on a cash basis was $26,000. Revenues Supplies Rent Equipment A the beginning of the year, D Company purchased and expensed an item of equipment for $40,000. The equipment has a 4-year life, and will be worthless after four years. There were no wages payable at the beginning of the year. E Company paid $290,000 in wages during the year, and owed an additional $24,000 at year's end. Wages Worksheet 5 Revenues Supplies Rent Equipment…