Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below. 1. The company performed $17,000 of services for customers, on credit. 2. The company received $17,000 in cash from customers who had been billed for services (in transaction 1). 3. The company received a bill for $3,200 of advertising, but will not pay it until a later date. 4. The company paid a dividend of $7,000 in cash to stockholders. Prepare a tabular analysis which shows the effects of these transactions on the accounting equation. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).)
Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below. 1. The company performed $17,000 of services for customers, on credit. 2. The company received $17,000 in cash from customers who had been billed for services (in transaction 1). 3. The company received a bill for $3,200 of advertising, but will not pay it until a later date. 4. The company paid a dividend of $7,000 in cash to stockholders. Prepare a tabular analysis which shows the effects of these transactions on the accounting equation. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below.
| 1. | The company performed $17,000 of services for customers, on credit. | |
| 2. | The company received $17,000 in cash from customers who had been billed for services (in transaction 1). | |
| 3. | The company received a bill for $3,200 of advertising, but will not pay it until a later date. | |
| 4. | The company paid a dividend of $7,000 in cash to stockholders. |
Prepare a tabular analysis which shows the effects of these transactions on the
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