Daniel Winters decides to open a cleaning and laundry service near the local university campus that will operate as a company. Analyse the following transactions for the month of June 2022 in terms of their effect on the accounting equation. Record each transaction by increasing (+) or decreasing (–) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in owners' equity. Transactions (1) Issued shares in exchange for $20,000 cash on June 1. (2) Purchased equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days. (3) Purchased supplies for $1,200 cash. (4) Received a bill from University News for $300 for advertising in the campus newspaper. (5) Cash receipts from customers for cleaning and laundry amounted to $2,400. (6) Paid salaries of $600 to student workers. (7) Billed the Lion Soccer Team $450 for cleaning and laundry services. (8) Paid $300 to University News for advertising that was previously billed in Transaction 4. (9) Paid dividends of $1,200. (10) Incurred utility expenses for the month on account, $500. Show the effects of the above transactions on the accounting equation using the following format: Transaction Cash + Account receivable + supplies + equipment = account payable + share capital + revenue - expenses - dividend
Daniel Winters decides to open a cleaning and laundry service near the local university campus that will operate as a company. Analyse the following transactions for the month of June 2022 in terms of their effect on the
Transactions
(1) Issued shares in exchange for $20,000 cash on June 1.
(2) Purchased equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days.
(3) Purchased supplies for $1,200 cash.
(4) Received a bill from University News for $300 for advertising in the campus newspaper. (5) Cash receipts from customers for cleaning and laundry amounted to $2,400.
(6) Paid salaries of $600 to student workers.
(7) Billed the Lion Soccer Team $450 for cleaning and laundry services.
(8) Paid $300 to University News for advertising that was previously billed in Transaction 4.
(9) Paid dividends of $1,200.
(10) Incurred utility expenses for the month on account, $500.
Show the effects of the above transactions on the accounting equation using the following format:
Transaction Cash +
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