Question: Transactions made by Mickelson Co. for the
Transactions made by Mickelson Co. for the month of March are shown below.
Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation, similar to that shown in Illustration 3-3 (given below).
![Transactions made by Mickelson Co. for the month of March are shown below.
Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation, similar to that shown in Illustration 3-3 (given below).
1. The company performed $20,000 of services for customers on account.
2. The company received $20,000 in cash from customers who had been billed for services [in transaction (1)].
3. The company received a bill for $1,800 of advertising but will not pay it until a later date.
4. Mickelson Co. paid a cash dividend of $3,000.](../images/transactions-made-by-mickelson-co--for-the-month-of-march-are-57460-1.jpg)
1. The company performed $20,000 of services for customers on account.
2. The company received $20,000 in cash from customers who had been billed for services [in transaction (1)].
3. The company received a bill for $1,800 of advertising but will not pay it until a later date.
4. Mickelson Co. paid a cash dividend of $3,000.
Transcribed Image Text:
ILLUSTRATION 3-3 Summary of transactions Assets Liabilities Stockholders' Equity Retained Earnings Sup- + plies + Insur. + ment - Prepd. Equip- Notes Accts. Unearned Common Cash Pay. + Рay. + Serv. Rev. + Stock Rev. Exp. Div. (1) +$10,000 +$10,000 Issued stock (2) +5,000 +$5,000 (3) -5,000 +$5,000 (4) +1,200 +$1,200 (5) +10,000 +$10,000 Service Revenue (6) -900 -$ 900 Rent Expense (7) -600 +$600 (8) +$2,500 + $2,500 (10) -500 -$500 Dividends (11) -4,000 -4,000 Sal.Wages Expense $15,200 + $2,500 + $600 + $5,000 = $5,000 + $2,500 + $1,200 $10,000 + $10,000 - $4,900 $500 $23,300 $23,300
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