The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $6,900 cash. b. The company completed commission work for a client and sent a bill for $5,400 to be received within 30 days. c. The company paid an assistant $2,100 cash as wages for the period. d. The company collected $2,700 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $980 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. Transactions Number a. b. Balance after a and b C. Balance after c d. Balance after d e. Balance after e $ $ Cash Assets + 6,900 + + 6,900 + + 6,900 + + 6,900 + 980 + 7,880 + Accounts Receivable $ 5,400 5,400 5,400 = Liabilities + Accounts Payable $ 5,400 = = = = = = 5,400 = = = $ 0 0 0 0 + + + + + + + + + + Owner, Capital $ 0 0 0 0 - Owner, Withdrawals $ Equity + + 0 + 0 + + 0 + + + + 0 + Revenue $ 0 0 0 0 - - Expenses $ 0 0 0 0

The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $6,900 cash. b. The company completed commission work for a client and sent a bill for $5,400 to be received within 30 days. c. The company paid an assistant $2,100 cash as wages for the period. d. The company collected $2,700 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $980 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. Transactions Number a. b. Balance after a and b C. Balance after c d. Balance after d e. Balance after e $ $ Cash Assets + 6,900 + + 6,900 + + 6,900 + + 6,900 + 980 + 7,880 + Accounts Receivable $ 5,400 5,400 5,400 = Liabilities + Accounts Payable $ 5,400 = = = = = = 5,400 = = = $ 0 0 0 0 + + + + + + + + + + Owner, Capital $ 0 0 0 0 - Owner, Withdrawals $ Equity + + 0 + 0 + + 0 + + + + 0 + Revenue $ 0 0 0 0 - - Expenses $ 0 0 0 0

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Description: The following transactions were completed by the company.a. The company completed consulting work for a client and immediately collected $6,900 cash.b. The company completed commission work for a client and sent a bill for $5,400 to be received with

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $6,900 cash.
b. The company completed commission work for a client and sent a bill for $5,400 to be received within 30 days.
c. The company paid an assistant $2,100 cash as wages for the period.
d. The company collected $2,700 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $980 cash for this period's cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting equation.
Note: Enter decreases to account balances with a minus sign.
Transactions Number
a.
b.
Balance after a and b
C.
Balance after c
d.
Balance after d
e.
Balance after e
Cash
$
Assets
$ 6,900 +
6,900
+
6,900
+
+
+
+
+
6,900 +
980 +
7,880 +
Accounts
Receivable
$
5,400
$ 5,400 =
5,400
5,400
= Liabilities +
Accounts
Payable
5,400
=
=
=
=
=
=
=
=
=
$
0
0
0
0
+
+
+
+
+
+
+
+
+
+
Owner,
Capital
$
0
0
0
0
Owner,
Withdrawals
$
Equity
0
0
0
0
+
+
+
+
+
+
+
+
+
+
Revenue
$
0
0
0
0
-
-
Expenses
$
0
0
0
0

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