Transactions made by Morlan and Co., a law firm, for the month of March are shown on the next page. Prepare a tabular analysis which shows the effects of these transactions on the accounting equation, similar to that shown in Illustration 1-9 (page 21).

1. The company performed $23,000 of services for customers, on credit.
2. The company received $23,000 in cash from customers who had been billed for services (in transaction 1).
3. The company received a bill for $1,800 of advertising, but will not pay it until a later date.
4. The company paid a dividend of $5,000 in cash tostockholders.

  • CreatedFebruary 17, 2014
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