For each transaction, describe the Uull example, in the first transaction, (1) a
ID: 2341923 • Letter: F
Question
For each transaction, describe the Uull example, in the first transaction, (1) assets increase and (ejsid increases E2-4 Boilermaker House Painting Company incurs the following transactions Paint houses in the current month for $15,000 on account. 1. 2. Purchase painting equipment for $16,000 cash. 3. Purchase office supplies on account for $2,500. 4. Pay employee salaries of $3,200 for the current month. Purchase advertising to appear in the current month, $1,200. 6. Pay office rent of $4,400 for the current month. 7. Receive $10,000 from customers in (1) above. 8. Receive cash of $5,000 in advance from a customer who plans to have his 5. house painted in the following month. MacBook AirExplanation / Answer
Boilermaker House Painting Company
Analysis of Transactions
S.No.
Transactions
Analysis
1
Paint house in the Current month for $15,000 on account
(1) Increase in Assets (Accounts Receivable) and (2) Increase in Equity (Revenue)
2
Purchase Painting Equipment for $16,000 Cash
(1) Increase in Assets (Equipment) and (2) Decrease in Assets (Cash)
3
Purchase Office Supplies on account for $2,500
(1) Increase in Assets (Office Supplies) and (2) Increase in Liabilities (Accounts Payable)
4
Pay Employee's Salaries of $3200 for the current month
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
5
Purchase advertising to appear in current month, $1,200
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
6
Pay office Rent of $4,400 for the Current month
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
7
Receive $10,000 from customers in (1) above
(1) Increase in Assets (Cash) and (2) Decrease in Assets (Accounts Receivable)
8
Receive cash of $5,000 in advance from a customer
(1) Increase in Assets (Cash) and (2) Increase in Liabilities (Advance from Customer)
Boilermaker House Painting Company
Analysis of Transactions
S.No.
Transactions
Analysis
1
Paint house in the Current month for $15,000 on account
(1) Increase in Assets (Accounts Receivable) and (2) Increase in Equity (Revenue)
2
Purchase Painting Equipment for $16,000 Cash
(1) Increase in Assets (Equipment) and (2) Decrease in Assets (Cash)
3
Purchase Office Supplies on account for $2,500
(1) Increase in Assets (Office Supplies) and (2) Increase in Liabilities (Accounts Payable)
4
Pay Employee's Salaries of $3200 for the current month
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
5
Purchase advertising to appear in current month, $1,200
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
6
Pay office Rent of $4,400 for the Current month
(1) Decrease in Assets (Cash) and (2) Decrease in Equity (Expenses)
7
Receive $10,000 from customers in (1) above
(1) Increase in Assets (Cash) and (2) Decrease in Assets (Accounts Receivable)
8
Receive cash of $5,000 in advance from a customer
(1) Increase in Assets (Cash) and (2) Increase in Liabilities (Advance from Customer)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.