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

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 ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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