Selected transactions for Evergreen Lawn CareCompany are listed below. 1. Made c

Question

Selected transactions for Evergreen Lawn CareCompany are listed below.
1. Made cash investment to star business
2. Paid monthly rent.
3. Purchased equipment on account.
4. Billed customers for services performed.
5. Withdrew cash for owner's personal use.
6. Received cash from customers billed in (4).
7. Incurred advertising expense on account.
8. Purchased additional equipment for cash.
9. Received cash from customers when service was performed.

List the numbers of the above transactions and describe the effectof each transaction on assets, liabilities, and owner;s equity. Forexample, the first answer is: (1) Increase in assets and increasein owner's equity.

Please show all work, Thank You

Explanation / Answer

1. Made cash investment to star business

2. Paid monthly rent.       Decrease in assets(cash) and decrease in owner's equity(due to rent expense)
3. Purchased equipment onaccount.       Increase in assets(equipment) and increase inliabilities (accounts payable)
4. Billedcustomers for services performed.       Increase in assets(accounts receivables) and increase inOwner's equity
5. Withdrew cash for owner's personal use.       decrease in assets (cash) and decrease in owner'sequity
6. Received cash from customers billed in(4).       Increase inassets(cash) and decrease in assets(accountsreceivables)
7. Incurred advertising expense onaccount.       Increase in liabilities(accounts payable) and decrease inowner's equity(due to advertising expense)
8.Purchased additional equipment for cash.       Increase in assets(equipment) and decrease inassets(cash)
9. Received cash from customerswhen service was performed       Increase in assets(cash) and increase in owner'sequity(due to cash sales).

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.