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Using the accounting equation to analyse transactions Tiny Town Kennel earns service revenue by caring for the pets of customers Tiny Town Kennel is organised as a corporation During the past month

Using the accounting equation to analyse transactions

Tiny Town Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organised as a corporation. During the past month, Tiny Town Kennel has the following transactions:

a. Received $520 cash for service revenue earned.

b. Paid $325 cash for salaries expense.

c. Investors contributed $1,000 to the corporation in exchange for common stock.

d. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet.

e. Received utility bill of $85, which will be paid next month.

f. Cash dividends of $100 were paid to stockholders.

Indicate the effects of the business transactions on the accounting equation for Tiny Town Kennel. Transaction (a) is answered as a guide.

a. Increase asset (Cash); Increase equity (Service Revenue)

Apr 22 2020 View more View Less

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