Liam's Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service revenue transaction in the amount of $550,000 on May 31, 2022, with one customer. This customer chose to put the balance owed on its credit account with Liam's, and paid off the balance owed of $550,000 in full on June 23, 2022. What is the effect of this transaction on the accounting equation? What is the journal entry for this transaction? Omit explanation. What is the effect of the June 23 transaction on the accounting equation? (If an input field is not used in the table leave the input field empty; do not enter a zero. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: Acc. OCI = Accumulated Other Comprehensive Income; Beg. R/E = Beginning Retained Earnings; Contr. Cap. = Contributed Capital.) Assets = Liabilities + 550,000+ 11 *** Cash + Accounts = Liabilities + Contr. + Acc. + Beg. + Revenues Receivable Cap. OCI R/E and Gains + + Stockholders' Equity Ending Retained Earnings + . Expenses - Dividends and Losses Declared
Liam's Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service revenue transaction in the amount of $550,000 on May 31, 2022, with one customer. This customer chose to put the balance owed on its credit account with Liam's, and paid off the balance owed of $550,000 in full on June 23, 2022. What is the effect of this transaction on the accounting equation? What is the journal entry for this transaction? Omit explanation. What is the effect of the June 23 transaction on the accounting equation? (If an input field is not used in the table leave the input field empty; do not enter a zero. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: Acc. OCI = Accumulated Other Comprehensive Income; Beg. R/E = Beginning Retained Earnings; Contr. Cap. = Contributed Capital.) Assets = Liabilities + 550,000+ 11 *** Cash + Accounts = Liabilities + Contr. + Acc. + Beg. + Revenues Receivable Cap. OCI R/E and Gains + + Stockholders' Equity Ending Retained Earnings + . Expenses - Dividends and Losses Declared
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Ee.55.
Transcribed Image Text:Liam's Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service
revenue transaction in the amount of $550,000 on May 31, 2022, with one customer. This customer chose to put the balance owed
on its credit account with Liam's, and paid off the balance owed of $550,000 in full on June 23, 2022. What is the effect of this
transaction on the accounting equation? What is the journal entry for this transaction? Omit explanation.
What is the effect of the June 23 transaction on the accounting equation? (If an input field is not used in the table leave the input
field empty; do not enter a zero. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: Acc. OCI =
Accumulated Other Comprehensive Income; Beg. R/E = Beginning Retained Earnings; Contr. Cap. = Contributed Capital.)
Stockholders' Equity
Assets
...
= Liabilities +
550,000+
Cash + Accounts = Liabilities + Contr. + Acc. + Beg.
Receivable
Cap.
OCI
R/E
+
Ending Retained Earnings
+ Revenues Expenses
Dividends
and Gains and Losses Declared
+
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education