Question 2 Sualihu Ltd had the following selected transactions: 1. Sualihu Ltd invested AED4,000 in the business in exchange for ordinary shares. 2. Paid office rent of AED1,100 3. Performed consulting services and billed a client AED5,200. 4. Declared and paid a AED700 cash dividend. Required to: [a] Indicate the effect each transaction has on the accounting equation [Assets-Liabilities + Equity] using plus and minus signs. [b] Journalize each transaction.

Question 2 Sualihu Ltd had the following selected transactions: 1. Sualihu Ltd invested AED4,000 in the business in exchange for ordinary shares. 2. Paid office rent of AED1,100 3. Performed consulting services and billed a client AED5,200. 4. Declared and paid a AED700 cash dividend. Required to: [a] Indicate the effect each transaction has on the accounting equation [Assets-Liabilities + Equity] using plus and minus signs. [b] Journalize each transaction.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 3BE: Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected...

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Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account, 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000; Common Stock increases by 18,000.
Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account. 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000: Common Stock increases by 18,000.