On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks. The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation: September 1 Description Verbally agreed to sign a 12 month commercial insurance contract for any liability that might emerge from the activity. Multiple Choice O Decrease assets and decrease liabilities Increase assets and increase Owner's equity Increase assets and increase liabilities Increase and decrease assets None of the other alternatives are correct Amount $600 per month for 1 year

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks. The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation: September 1 Description Verbally agreed to sign a 12 month commercial insurance contract for any liability that might emerge from the activity. Multiple Choice O Decrease assets and decrease liabilities Increase assets and increase Owner's equity Increase assets and increase liabilities Increase and decrease assets None of the other alternatives are correct Amount $600 per month for 1 year

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Description: On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want tolearn and practice wrestling activities for fun by learning how t

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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