Using the accounting equation to analyze transactions Tiny Town Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized 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)