Using the information provided, analyze the effects of Lawry Lawn Service's transactions on the accounting equation. May
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Question:
Using the information provided, analyze the effects of Lawry Lawn Service's transactions on the accounting equation.
May 1 | Received $3,400 and issued common stock |
May 3 | Purchased a mower on account, $1,600 |
May 5 | Performed lawn services for client on account $1,000 |
May 17 | Paid $100 cash for gas used in mower. |
May 28 | Paid cash dividends of $700 |
Analyze the events chronologically, one transaction at a time. Beginning with the transaction on May 3rd, calculate the balance in each account after analyzing the effect of the transaction on the accounting equation.
Assets | = | Liab | + | Equity | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Contr. Capital | + | Retained Earnings | |||||||||||||
Cash | + | Accounts Receivable | + | Equipment | = | Accounts payable | + | Common Stock | - | Dividends | + | Service Revenue | - | Gas Expense | |
5/1 | |||||||||||||||
5/3 | |||||||||||||||
Bal. | |||||||||||||||
5/5 | |||||||||||||||
Bal. | |||||||||||||||
5/17 | |||||||||||||||
Bal. | |||||||||||||||
5/28 | |||||||||||||||
Bal. |
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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