Transaction 4-Earning of Service Revenue for Cash Smart Touch Learning earns service revenue by providing training...

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Transaction 4-Earning of Service Revenue for Cash Smart Touch Learning earns service revenue by providing training services for clients. The business earns $5,500 of revenue and collects this amount in cash. The effect on the accounting equation is an increase in Cash and an increase in Service Revenue as follows: ASSETS Cash + Office + Land Supplies Bal. $10,000 + $500 + $20,000 (4) +5,500 Bal. $15,500 + $500 + $20,000 LIABILITIES + Accounts + Payable $500 $500 EQUITY Contributed + Retained Capital Earnings Common Stock $30,000 + Service Revenue +5,500 $30,000 + $5,500 A revenue transaction grows the business, as shown by the increases in assets and equity. Transaction 4-Earning of Service Revenue for Cash Smart Touch Learning earns service revenue by providing training services for clients. The business earns $5,500 of revenue and collects this amount in cash. The effect on the accounting equation is an increase in Cash and an increase in Service Revenue as follows: ASSETS Cash + Office + Land Supplies Bal. $10,000 + $500 + $20,000 (4) +5,500 Bal. $15,500 + $500 + $20,000 LIABILITIES + Accounts + Payable $500 $500 EQUITY Contributed + Retained Capital Earnings Common Stock $30,000 + Service Revenue +5,500 $30,000 + $5,500 A revenue transaction grows the business, as shown by the increases in assets and equity.

Answer rating: 100% (QA)

This image displays an accounting transaction record that demonstrates the effect of earning service revenue on a businesss accounting equation The bu... View the full answer