For each transaction, numbered 1 through 12 below, identify its effect for the current year on...

For each transaction, numbered 1 through 12 below, identify its effect for the current year on the accounting equation by selecting from a through h below. You may use each letter more than once or not at all.

Accounting Equation Effects

a. + A and + L

b. + A and + SE (Contributed Capital)

c. + A and + SE (Retained Earnings)

d. - A and - L

e. - A and - SE (Contributed Capital)

f. - A and - SE (Retained Earnings)

g. + A and - A

h. Not communicated by the formal accounting system

ANSWER HERE	#	Transaction
g	1	Purchased computer equipment for cash
	2	Received cash in exchange for the issuance of a note payable
	3	Purchased building and land in exchange for a mortgage note payable
	4	Received cash in exchange for the issuance of common stock
	5	Purchased computer supplies on account
	6	Provided computer services to customers for cash
	7	Paid an account payable
	8	Provided computer services to customers on account
	9	Used computer supplies in the regular operations of the business (acquired during a previous accounting period)
	10	Recorded depreciation for the company’s computer
	11	Secured a large contract with Allegheny Company to provide computer services during the forthcoming year
	12	Declared and paid dividends to the owners of common stock

Solutions

Expert Solution

Requirement asked

ANSWER HERE	#	Transaction
g. + A and - A	1	Purchased computer equipment for cash
a. + A and + L	2	Received cash in exchange for the issuance of a note payable
a. + A and + L	3	Purchased building and land in exchange for a mortgage note payable
b. + A and + SE (Contributed Capital)	4	Received cash in exchange for the issuance of common stock
a. + A and + L	5	Purchased computer supplies on account
c. + A and + SE (Retained Earnings)	6	Provided computer services to customers for cash
d. - A and - L	7	Paid an account payable
c. + A and + SE (Retained Earnings)	8	Provided computer services to customers on account
f. - A and - SE (Retained Earnings)	9	Used computer supplies in the regular operations of the business (acquired during a previous accounting period)
f. - A and - SE (Retained Earnings)	10	Recorded depreciation for the company’s computer
h. Not communicated by the formal accounting system	11	Secured a large contract with Allegheny Company to provide computer services during the forthcoming year
f. - A and - SE (Retained Earnings)	12	Declared and paid dividends to the owners of common stock

ekkarill92 answered 1 year ago

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