Explanation Above entries on accounting equation can be explained as follows: Dec.1: Cash contributed as capital: It will increase the cash and capital; hence cash and capital are increased by $19,000. Dec.2: Performed service for cash: It will increase the cash and revenue; hence cash and Service Revenue are increased by $3800. Dec.5: Purchased office supplies for cash: It will increase the office supplies and decrease Cash, hence, office supplies are increased by $ 200 and Cash is decreased by $200. Dec. 9: Services rendered and billed: It will increase the services revenue and accounts receivables, hence, services revenue and accounts receivables are increased by $4,500. Dec. 10: Utilities incurred: It will increase the utility expense and the accounts payable, hence, utility expense and the accounts payable are increased by $200. Dec. 15: Expenses Paid in cash: It will increase the Expense account and decrease the cash, hence advertisement expense is increased by $ 250 and cash is decreased by total payment $250. Dec. 20: Amount payable paid in cash: It will decrease the cash and accounts payable, hence, cash and accounts payable are decreased by $200...

3rd Edition

ISBN: 9781323761434

Author: Horngren

Publisher: PEARSON C

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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…

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Chapter 1, Problem P1.41APGA

To determine

Accounting Equation:

Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:

Assets = Liabilities + Equity

To indicate:

The outcome of given transactions on the accounting equation.

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Chapter 1 Solutions

ACCOUNTING PRINCIPLES V1 6/17 >C<

Ch. 1 - Prob. 1QC Ch. 1 - Which of the following is not an external user of...Ch. 1 - Prob. 3QC Ch. 1 - Prob. 4QC Ch. 1 - Prob. 5QC Ch. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the Learning Objective 5...

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