E2-7 - = Liabilities Stockholder's Equity 1 Increase No...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Rowand Enterprises had the following selected transactions. 1. Aaron Rowand invested $4,000 cash in the business in exchange for common stock. 2. Paid office rent of $1,100. 3. Performed consulting services and billed a client $5,200. 4. Paid $700 cash dividend. Instructions (a) Indicate the effect each transaction has on the basic equation (Assets = Liabilities + Owner's Equity). Assets
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: = Liabilities + Stockholder's Equity 1. Increase No effect Increase 2. Decrease No effect Decrease 3. Increase No effect Increase 4. Decrease No effect Decrease (b) Journalize each transaction. Description/Account Debit Credit 1. Cash 4000 Common Stock 4000 2. Rent expense 1100 Cash 1100 3. Accounts receivable 5200 Consulting revenue 5200 4. Dividends 700 Cash 700...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online