TNT has the following transactions during April of the current year. Apr. 1 Opens a law...

 

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TNT has the following transactions during April of the current year. Apr. 1 Opens a law office, investing $25,000 in cash. 4 Pays rent in advance for 6 months, $9,000 cash. 16 Receives $8,000 from clients for services provided. 27 Pays secretary $2,800 salary. Indicate the effect on the accounting equation and the debit-credit analysis. Effect on Accounting Equation is Increased▾ Apr. 1 Apr. 4 Apr. 18 The asset Cash the stockholders' equity account The asset Prepaid Rent the asset Cash The asset Cash the revenue Service Revenue is Increased ▾ Decreased ▾ is Increased ▾ is Increased ▾ Debit-Credit Analysis Debits Increase Assets is Increased Debit 25000 Credits Increase Stockholders' Equity Credit Debits Decrease Assets Debit 9000 Credits Decrease Assets Credit Debits Increase Assets Debit 8000 Credits Increase Revenues $ $ ▼ 25000 9000 TNT has the following transactions during April of the current year. Apr. 1 Opens a law office, investing $25,000 in cash. 4 Pays rent in advance for 6 months, $9,000 cash. 16 Receives $8,000 from clients for services provided. 27 Pays secretary $2,800 salary. Indicate the effect on the accounting equation and the debit-credit analysis. Effect on Accounting Equation is Increased▾ Apr. 1 Apr. 4 Apr. 18 The asset Cash the stockholders' equity account The asset Prepaid Rent the asset Cash The asset Cash the revenue Service Revenue is Increased ▾ Decreased ▾ is Increased ▾ is Increased ▾ Debit-Credit Analysis Debits Increase Assets is Increased Debit 25000 Credits Increase Stockholders' Equity Credit Debits Decrease Assets Debit 9000 Credits Decrease Assets Credit Debits Increase Assets Debit 8000 Credits Increase Revenues $ $ ▼ 25000 9000

Answer rating: 100% (QA)

ANSWER Solution The effect on the accounting equation and the debitcredit analysis are as follows Da... View the full answer