Chapter 1, Problem 10QS

Identifying effects of transactions using accounting equation-Revenues and Expenses P1

Create the following table similar to the one in Exhibit 1.9.

Assets	=	Liabilities+		Equity
Cash +	Accounts =	Accounts +	Common -	Dividends +	Revenues -	Expenses
	Receivable	Payable	Stock

Then use additions and subtractions to show the dollar effects of each transaction on individual items of the accounting equation (identify each revenue and expense type, such as commissions revenue or rent expense).

1. The company completed consulting work for a client and immediately collected $5,500 cash earned.
2. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days.
3. The company paid as assistant $41,400 cash as wages for the period.
4. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b.
5. The company paid $700 cash for this period’s cleaning services.