Elaine's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine's Inflatables is organized as a sole proprietorship and owned by Elaine Gibson. During the past month, Elaine's Inflatables has the following transactions: A (Click the icon to view the transactions.) Indicate the effects of the business transactions on the accounting equation for Elaine's Inflatables. Transaction (a) is answered as a guide. Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Gibson, Capital; Gibson, Withdrawals; Service Revenue, Wages Expense, Rent Expense, and Utilities Expense. a. Gibson contributed $10,000 to the business in exchange for capital. (Transaction (a) is answered as a guide.) a. Increase asset (Cash) Increase equity (Gibson, Capital) b. Purchased equipment for $5,000 on account. b.

Elaine's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine's Inflatables is organized as a sole proprietorship and owned by Elaine Gibson. During the past month, Elaine's Inflatables has the following transactions: A (Click the icon to view the transactions.) Indicate the effects of the business transactions on the accounting equation for Elaine's Inflatables. Transaction (a) is answered as a guide. Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Gibson, Capital; Gibson, Withdrawals; Service Revenue, Wages Expense, Rent Expense, and Utilities Expense. a. Gibson contributed $10,000 to the business in exchange for capital. (Transaction (a) is answered as a guide.) a. Increase asset (Cash) Increase equity (Gibson, Capital) b. Purchased equipment for $5,000 on account. b.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...

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