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Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below. 1.   The company performed $17,000 of services for customers, on credit. 2.   The company received $17,000 in cash from customers who had been billed for services (in transaction 1). 3.   The company received a bill for $3,200 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 which 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).)

Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below. 1.   The company performed $17,000 of services for customers, on credit. 2.   The company received $17,000 in cash from customers who had been billed for services (in transaction 1). 3.   The company received a bill for $3,200 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 which 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).)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below.

1.   The company performed $17,000 of services for customers, on credit.
2.   The company received $17,000 in cash from customers who had been billed for services (in transaction 1).
3.   The company received a bill for $3,200 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 which 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 + Cash Accounts Receivable Accounts Payable Common Stock + + $ $ %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
Transcribed Image Text:Assets Liabilities + Cash Accounts Receivable Accounts Payable Common Stock + + $ $ %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
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