Atkins Company collected $1,750 as payment for the amount owed bya customer from services provided the prior month on credit. How doesthis transaction affect the accounting equation for Atkins?a. Assets would decrease by $1,750 and liabilities would decrease by$1,750.b. One asset would increase by $1,750 and a different asset woulddecrease by $1,750, causing no effect.c. Assets would increase by $1,750 and equity would increase by$1,750.d. Assets would increase by $1,750 and liabilities would increase by$1,750.e. Liabilities would decrease by $1,750 and equity would increase by$1,750.

Correct Answer:b. One asset would increase by $1,750 and a different asset would decrease by $1,750,…

Answered: Atkins Company collected $1,750 as…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 38E: Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on...

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The business collects an OR5,000 account receivable from its customer. How is the accounting equation affected? Select one: O a. Assets increase OR 5,000; owner's equity increases OR 5,000. O b. Assets increase OR 5,000; liabilities decrease OR 5,000. c. Assets increase OR5,000; liabilities increase OR 5,000. O d. One asset increases by OR5,000; another asset decreases OR $5,000.
Which of the following statements is TRUE? If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. a. b. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. с. d. None of the above.
Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected.EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid in cash during the year. No. A = E + L Eg. -75996 Bank (6333 x 12) - 75996 Rent Expense Please use format of table above for the below transactionsThe following transactions occurred in the business during the year ended 31 December 2020: 1. The owner deposited R105 000 cash into the business’s bank account on 1 January 2020.2. The business bought R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash.3. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been…
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If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.
Saddleback Company paid off $39,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
Use additions and subtractions to show the dollar effects of each transaction on a. to e. below on the expanded accounting equation below. Intermediate balances are not required. a. The company completed consulting work for a client and immediately collected $5,500 cash. b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days. e. The company paid an assistant $1,400 cash as wages for the period. d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $700 cash for this period's cleaning services. Date Cash + Assets Accounts Receivable + Office Equipment = = Liabilities + Accounts + Payable Common Stock 4 Stockholders' Equity Dividends + Revenues Expenses
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During its first year of operations, Yellow Bell Co. provided services to customers for the value of $76,000. At the end of the year, $16,000 of the $76,000 remained in Accounts Receivable. Yellow Bell Co. also incurred expenses of $47,000, of which, $7,000 is remained in Accounts Payable at year end. How much was Yellow Bell’s revenue assuming they used the accrual method of accounting?
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N1. Account
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