Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1.Received cash from owner as additional investment, $55,000.
2.Paid creditors on account, $7,000.
3.Billed customers for services on account, $2,565.
4.Received cash from customers on account, $8,450.
5.Paid cash to owner for personal use, $2,500.
6.Received the utility bill, $160, to be paid next month.

?Indicate the effect of each transaction on the accounting equation by:
(a)Accounting equation element type: (A) assets, (
L) liabilities, (O
E) owner's equity, (
R) revenue, and (
E) expense b)Name of accounting equation element c)The amount of the transaction d)The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.?

Question

Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1.Received cash from owner as additional investment, $55,000.
2.Paid creditors on account, $7,000.
3.Billed customers for services on account, $2,565.
4.Received cash from customers on account, $8,450.
5.Paid cash to owner for personal use, $2,500.
6.Received the utility bill, $160, to be paid next month.

?Indicate the effect of each transaction on the accounting equation by:
(a)Accounting equation element type:  (A) assets, (
L) liabilities, (O
E) owner's equity, (
R) revenue, and (
E) expense b)Name of accounting equation element c)The amount of the transaction d)The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.?

Quizplus · Accepted Answer

The Answer of Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1.Received cash from owner as additional investment, $55,000.
2.Paid creditors on account, $7,000.
3.Billed customers for services on account, $2,565.
4.Received cash from customers on account, $8,450.
5.Paid cash to owner for personal use, $2,500.
6.Received the utility bill, $160, to be paid next month.

?Indicate the effect of each transaction on the accounting equation by:
(a)Accounting equation element type:  (A) assets, (
L) liabilities, (O
E) owner's equity, (
R) revenue, and (
E) expense b)Name of accounting equation element c)The amount of the transaction d)The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.?

Daniels Company Is Owned and Operated by Thomas Daniels