Elaines inflatables earn service revenue by providing party, planning services and inflatable place scapes. Elaines inflatables is organized as a sole perpetrator ship, and owned by Elaine Gibson. During the past month, Elaines inflatables has the following transactions.Indicate the effects of the business transactions on the accounting equation 3 lanes inflatables. Use the following accounts, cash, accounts, receivable, supplies, equipment, accounts, payable, Gibson capital ,Gibsonwithdrawals, service, revenue, wages, expense, rent expense, and utilitiesexpense. a. Gibson contributed $10,000 to the business in exchange for capital. (Transaction (a) is answered as a guidea. Increase asset(Cash)Increase equity (Gibson, Capital)b. Purchased equipment for $5,000 on account.c. Paid $400 for office supplies.C.d. Earned and received $2,500 cash for service revenue.d.e. Paid $400 for wages to employees.e.f. Gibson withdrew $1,000 cash.f.g. Earned $1,000 for services provided. Customer has not yet paid.9-h. Paid $1,000 for rent.h.L. Received a bill for $250 for the monthly utilities. The bill has not yet been paid. a. Gibson contributed $10,000 to the business in exchange for capital.b. Purchased equipment for $5,000 on account.c. Paid $400 for office supplies.d. Earned and received $2,500 cash for service revenue.e. Paid $400 for wages to employees.f. Gibson withdrew $1,000 cash.g. Earned $1,000 for services provided. Customer has not yet paid.h. Paid $1,000 for rent.i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

a. Increase Assets (Cash); Increase Equity (Gibson Capital) b. Increase Assets (Equipment);…

Answered: Elaines inflatables earn service…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Elaines inflatables earn service revenue by providing party, planning services and inflatable place scapes. Elaines inflatables is organized as a sole perpetrator ship, and owned by Elaine Gibson. During the past month, Elaines inflatables has the following transactions.

Indicate the effects of the business transactions on the accounting equation 3 lanes inflatables. Use the following accounts, cash, accounts, receivable, supplies, equipment, accounts, payable, Gibson capital ,Gibson

withdrawals, service, revenue, wages, expense, rent expense, and utilities

expense.

a. Gibson contributed $10,000 to the business in exchange for capital. (Transaction (a) is answered as a guide
a. Increase asset
(Cash)
Increase equity (Gibson, Capital)
b. Purchased equipment for $5,000 on account.
c. Paid $400 for office supplies.
C.
d. Earned and received $2,500 cash for service revenue.
d.
e. Paid $400 for wages to employees.
e.
f. Gibson withdrew $1,000 cash.
f.
g. Earned $1,000 for services provided. Customer has not yet paid.
9-
h. Paid $1,000 for rent.
h.
L. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

a. Gibson contributed $10,000 to the business in exchange for capital.
b. Purchased equipment for $5,000 on account.
c. Paid $400 for office supplies.
d. Earned and received $2,500 cash for service revenue.
e. Paid $400 for wages to employees.
f. Gibson withdrew $1,000 cash.
g. Earned $1,000 for services provided. Customer has not yet paid.
h. Paid $1,000 for rent.
i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

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