Weygandt, Financial Accounting, 10e Help I System Announcements Exercise 2-7 Pha

Question

Weygandt, Financial Accounting, 10e Help I System Announcements Exercise 2-7 Pharoah Cormpany had the following selected transactions. 1. Kim Leppard invested $5,275 cash in the business in exchange for common stock. 2. Paid office rent of $1,002. 3. Performed consulting services and billed a client $4,958. 4. Declared and paid a $633 cash dividend. (a) Indicate the effect each transaction has on the accounting equation (Assets = Liabilities + stock Assets = Liabilities + Stockholders' Equity 2. 3. (b) Journalize each transaction. (Credit account titles are automatically indented when the an enter 0 for the amounts.)

Explanation / Answer

ans a Assets Liabilities Stockholder Equity 1 5275 5275 2 -1002 -1002 3 4958 4958 4 -633 -633 ans b Tran General Journal Dr Cr 1 Cash $5,275 Kim Leppard's Capital $5,275 2 Rent expenses $1,002 Cash $1,002 3 Accounts Receivable $4,958 Consulting Services Revenue $4,958 4 Dividends $633 Cash $633

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