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

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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
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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...
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.

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