Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: Received cash from owner as additional investment, $55,000. Paid creditors on account, $7,000. Billed customers for services on account, $2,565. Received cash from customers on account, $8,450. Paid cash to owner for personal use, $2,500. Paid the utility bill, $160. Indicate the effect of each transaction on the accounting equation by: Accounting equation element type: (A) assets, (L) liabilities, (OE) owner’s equity, (R) revenue, and (E) expense Name of accounting equation element. The amount of the transaction. The direction of change (increase or decrease) in the account affected. Note: Each transaction has two entries. Enter all amounts as positive numbers.
Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: Received cash from owner as additional investment, $55,000. Paid creditors on account, $7,000. Billed customers for services on account, $2,565. Received cash from customers on account, $8,450. Paid cash to owner for personal use, $2,500. Paid the utility bill, $160. Indicate the effect of each transaction on the accounting equation by: Accounting equation element type: (A) assets, (L) liabilities, (OE) owner’s equity, (R) revenue, and (E) expense Name of accounting equation element. The amount of the transaction. The direction of change (increase or decrease) in the account affected. Note: Each transaction has two entries. Enter all amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
- Received cash from owner as additional investment, $55,000.
- Paid creditors on account, $7,000.
- Billed customers for services on account, $2,565.
- Received cash from customers on account, $8,450.
- Paid cash to owner for personal use, $2,500.
- Paid the utility bill, $160.
Indicate the effect of each transaction on the
- Accounting equation element type: (A) assets, (L) liabilities, (OE) owner’s equity, (R) revenue, and (E) expense
- Name of accounting equation element.
- The amount of the transaction.
- The direction of change (increase or decrease) in the account affected.
Note: Each transaction has two entries. Enter all amounts as positive numbers.
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