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Analyze the Following Transactions as to Their Effect on the Accounting

Question 182

Matching

Analyze the following transactions as to their effect on the accounting equation.

Premises:

Responses:

The company collected $730 of cash from its customers on account.

Expense, dr.; Assets, cr.

The company paid $315 in salaries to its employees.

Expense, dr.; Liability, cr.

The company paid $725 to a vendor for supplies purchased previously on account.

Equity, dr.; Asset, cr.

The company received a utility bill for $395 and will pay it next month.

Liability, dr.; Assets, cr.

The stockholder of the company received a cash dividend of $1,000.

Asset, dr.; Liability, cr.

The company performed $850 of services and billed the customer.

Asset, dr.; Revenue, cr.

Asset, dr.; Asset, cr.

Liability, dr.; Revenue, cr.

Premises:

The company collected $730 of cash from its customers on account.

The company paid $315 in salaries to its employees.

The company paid $725 to a vendor for supplies purchased previously on account.

The company received a utility bill for $395 and will pay it next month.

The stockholder of the company received a cash dividend of $1,000.

The company performed $850 of services and billed the customer.

Responses:

Expense, dr.; Assets, cr.

Expense, dr.; Liability, cr.

Equity, dr.; Asset, cr.

Liability, dr.; Assets, cr.

Asset, dr.; Liability, cr.

Asset, dr.; Revenue, cr.

Asset, dr.; Asset, cr.

Liability, dr.; Revenue, cr.

Correct Answer:

Premises:

Responses:

Expense, dr.; Assets, cr.

Expense, dr.; Liability, cr.

Equity, dr.; Asset, cr.

Liability, dr.; Assets, cr.

Asset, dr.; Liability, cr.

Asset, dr.; Revenue, cr.

Asset, dr.; Asset, cr.

Liability, dr.; Revenue, cr.