Turtle Creek Kennel earns service revenue by caring for the pets of customers. Turtle Creek Kennel is organized as a corporation. During the past month, Turtle Creek Kennel has the following transactions:
a. Received $ 320 cash for service revenue earned.
b. Paid $ 125 cash for salaries expense.
c. Investors contributed $ 1,000 to the corporation in exchange for common stock.
d. Earned $ 440 for service revenue, but the customer has not paid Turtle Creek Kennel yet.
e. Received utility bill of $ 65, which will be paid next month.
f. Cash dividends of $ 80 were paid to stockholders.
Indicate the effects of the business transactions on the accounting equation for Turtle Creek Kennel. Transaction (a) is answered as a guide.
a. Increase asset (Cash); Increase equity (Service Revenue)

  • CreatedJanuary 16, 2015
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