Do not enter any zeros for your transaction lines Carry down all balances to

Do not enter any zeros for your transaction lines

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[Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses.) ASSETS = LIAB. + EQUITY Contr. Capital + Retained Earnings Cash + A/R + Office + Land = A/P + Com. - Div. + Service - Rent - Adv. Sup. Stock Rev. Exp. Exp. Bal. 2,500 + 2,500 + 0 + 14,000 = 8,000 + 8,500 - 0 + 2,500 - 0 - 0 a. 17,000 + + + = + 17,000 - + - - Bal. 19,500 + 2,500 + 0 + 14,000 = 8,000 + 25,500 - 0 + 2,500 - 0 - 0 b. 700 + + + = + - + 700 - - Bal. 20,200 + 2,500 + 0 + 14,000 = 8,000 + 25,500 - 0 + 3,200 - 0 - 0 c. (8,000) + + + = (8,000) + - + - -
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Bal. 12,200 + 2,500 + 0 + 14,000 = 0 + 25,500 - 0 + 3,200 - 0 - 0 d. + + 500 + = 500 + - + - - Bal. 12,200 + 2,500 + 500 + 14,000 = 500 + 25,500 - 0 + 3,200 - 0 - 0 e. Collected cash from a customer on account, $ 2 comma 100 . Top 40 performs services for clients who do not always pay immediately. The business receives the clients' promise to pay at a future date. This promise is an asset, an accounts receivable, because the business expects to collect the cash in the future. In accounting, we say that Top 40 performed this service on account. In this transaction, Top 40 is collecting $ 2 comma 100 from a client. We say that Top 40 collects the cash on account. The business will record an increase in the asset Cash. Should it also record an increase in Service Revenue? No, because the business already recorded the revenue when it earned the revenue. The phrase "collect cash on account" means to record an increase in Cash and a decrease in Accounts Receivable. Accounts Receivable is decreased because the $ 2 comma 100 that the business was to collect at some point in the future is being collected today. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses.) ASSETS = LIAB. + EQUITY Contr. Capital + Retained Earnings Cash + A/R + Office + Land = A/P + Com. - Div. + Service - Rent - Adv. Sup. Stock Rev. Exp. Exp. Bal. 2,500 + 2,500 + 0 + 14,000 = 8,000 + 8,500 - 0 + 2,500 - 0 - 0 a. 17,000 + + + = + 17,000 - + - - Bal. 19,500 + 2,500 + 0 + 14,000 = 8,000 + 25,500 - 0 + 2,500 - 0 - 0 b. 700 + + + = + - + 700 - - Bal. 20,200 + 2,500 + 0 + 14,000 = 8,000 + 25,500 - 0 + 3,200 - 0 - 0 c. (8,000) + + + = (8,000) + - + - - Bal. 12,200 + 2,500 + 0 + 14,000 = 0 + 25,500 - 0 + 3,200 - 0 - 0 d. + + 500 + = 500 + - + - - Bal. 12,200 + 2,500 + 500 + 14,000 = 500 + 25,500 - 0 + 3,200 - 0 - 0 e. 2,100 + (2,100) + + = + - + - -
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Bal. 14,300 + 400 + 500 + 14,000 = 500 + 25,500 - 0 + 3,200 - 0 - 0 f. Cash dividends of $ 1 comma 900 were paid to stockholders. Dividends decrease the business's assets and equity by decreasing Cash and increasing the Dividends account. Remember that dividends do not represent an expense because they are not related to the earning of revenue. Therefore, dividends do not affect the business's net income or net loss. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses.) ASSETS = LIAB. + EQUITY Contr. Capital + Retained Earnings Cash + A/R + Office + Land = A/P + Com. - Div. + Service - Rent - Adv. Sup. Stock Rev. Exp. Exp.
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