Transactions made by Whispering Winds Corp., a law firm, for the month of March are as follows. 1.   The company performed $45,000 of services for customers, on credit. 2.   The company received $45,000 in cash from customers who had been billed for services (in transaction 1). 3.   The company received a bill for $4,000 of advertising, but will not pay it until a later date. 4.   The company paid a dividend of $7,000 in cash to stockholders. Prepare a tabular analysis that shows the effects of these transactions on the accounting equation. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).) Assets  =  Liabilities  +  Stockholders' Equity                     Retained Earnings     Cash  +  Accounts Receivable  =  Accounts Payable  +  Common Stock  +  Revenues  –  Expenses  –  Dividends (1)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount                                (2)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount                                (3)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount                                (4)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount      $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 2PB: Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which...
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Transactions made by Whispering Winds Corp., a law firm, for the month of March are as follows.

1.   The company performed $45,000 of services for customers, on credit.
2.   The company received $45,000 in cash from customers who had been billed for services (in transaction 1).
3.   The company received a bill for $4,000 of advertising, but will not pay it until a later date.
4.   The company paid a dividend of $7,000 in cash to stockholders.

Prepare a tabular analysis that shows the effects of these transactions on the accounting equation. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).)
Assets
 = 
Liabilities
 + 
Stockholders' Equity
                    Retained Earnings
    Cash  +  Accounts Receivable  =  Accounts Payable  +  Common Stock  +  Revenues  –  Expenses  –  Dividends
(1)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount 
                             
(2)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount 
                             
(3)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount 
                             
(4)    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount    $Enter a dollar amount 
    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount    $Enter a total amount 
 

 

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