Transaction: Cavalier Co. purchases tools for $5,000. Cavalier Co. pays 25% of the balance in cash...

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Transaction: Cavalier Co. purchases tools for $5,000. Cavalier Co. pays 25% of the balance in cash and owes the rest. Required: For the transaction above, complete the following: (a) Select the accounts that are affected (there will be at least two). (b) Are the selected accounts increased or decreased? (c) What is the dollar amount of change in the accounts? (d) If Retained Earnings is selected, choose the reason that it has changed. Cash Account Accounts Receivable Supplies Tools Accounts Payable Capital Stock Retained Earnings Which accounts are affected? U Is the account increased or decreased? Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase. Decrease What is the amount of transaction? S $ S $I SI $ Why has Retained Earnings changed? X Choose One v Transaction: Cavalier Co. purchases tools for $5,000. Cavalier Co. pays 25% of the balance in cash and owes the rest. Required: For the transaction above, complete the following: (a) Select the accounts that are affected (there will be at least two). (b) Are the selected accounts increased or decreased? (c) What is the dollar amount of change in the accounts? (d) If Retained Earnings is selected, choose the reason that it has changed. Cash Account Accounts Receivable Supplies Tools Accounts Payable Capital Stock Retained Earnings Which accounts are affected? U Is the account increased or decreased? Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase. Decrease What is the amount of transaction? S $ S $I SI $ Why has Retained Earnings changed? X Choose One v

Answer rating: 100% (QA)

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