Boilermaker House Painting Company incurs the following transactions for September. 1. Paint houses in the current month
Question:
Boilermaker House Painting Company incurs the following transactions for September.
1. Paint houses in the current month for $15,000 on account.
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.
5. 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 house painted in the following month.
Required:
For each transaction, describe the dual effect on the accounting equation. For example, for the first transaction,
(1) Assets increase
(2) Stockholders’ equity increases.
Step by Step Answer:
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann