ACG 2021 Ch.3 || with Error-free Solutions.
Issued common stock to investors in exchange for cash received from investors. correct answers
INCREASE In Cash and INCREASE in Common Stock
Paid monthly rent. correct answers DECREASE in Cash and DECREASE in Rent Expenses
Received cash from customers when service was performed. correct answers INCREASE In
Cash and INCREASE in Service Revenues
Billed customers for services performed. correct answers INCREASE In Accounts Receivable
and INCREASE in Service Revenue
Paid dividend to stockholders. correct answers DECREASE in Cash and DECREASE in
Dividends
Incurred advertising expense on account. correct answers INCREASE in Accounts Payable and
DECREASE in Advertising Expenses
Received cash from customers billed in (4).
(4.Billed customers for services performed.) correct answers INCREASE in Cash and
DECREASE in Accounts Receivable
Purchased additional equipment for cash. correct answers INCREASE in Equipment and
DECREASE in Cash
Purchased equipment on account. correct answers INCREASE in Equipment and INCREASE in
Accounts Payable
Stockholders invested $40,000 in the business in exchange for common stock of the company
correct answers INCREASE Cash 40,000 and INCREASE Common Stock 40,000
Purchased computers for office use for $30,000 from Dell on account. correct answers
INCREASE Equipment 30,000 and INCREASE Accounts Payable 30,000
Paid $4,000 cash for May rent on storage space. correct answers DECREASE Cash (4,000) and
DECREASE Expenses (4,000)
Performed computer services worth $19,000 on account. correct answers INCREASE Accounts
Receivable 19,000 and INCREASE Revenues 19,000
Performed computer services to Lawton Construction Company for $5,000 cash. correct answers
INCREASE Cash 5,000 and INCREASE Revenues 5,000
, Paid Southern States Power Co. $8,000 cash for energy usage in May. correct answers DOWN
Cash (8,000) and DECREASE Expenses (8,000)
Paid Dell for the computers purchased in (2).
(Purchased computers for office use for $30,000 from Dell on account.) correct answers DOWN
Cash (30,000) and DECREASE Accounts Payable (30,000)
Incurred advertising expense for May of $1,300 on account. correct answers INCREASE
Accounts Payable 1,300 and DECREASE Expenses 1,300
Received $12,000 cash from customers for contracts billed in (4).
(Performed computer services worth $19,000 on account.) correct answers INCREASE Cash
12,000 and and DECREASE Accounts Receivable (12,000)
Issued shares of common stock to investors in exchange for $100,000 in cash. correct answers
INCREASE Cash 100,000 and INCREASE Common Stock of 100,000
Borrowed $45,000 by issuing bonds. correct answers INCREASE Cash 45,000 and INCREASE
of Bonds Payable of 45,000
Purchased delivery trucks for $60,000 cash. correct answers DECREASE Cash (60,000) and
INCREASE in Equipment of 60,000
Received $16,000 from customers for services performed. correct answers INCREASE Cash
16,000 and INCREASE in Service Revenues of 16,000
Purchased supplies for $4,700 on account. correct answers INCREASE Supplies 4,700 and
INCREASE in Accounts Payable 4,700
Paid rent of $5,200. correct answers DECREASE Cash (5,200) and DECREASE in Rent
Expense of (5,200)
Performed services on account for $10,000. correct answers INCREASE Accounts Receivable
10,000 and INCREASE Service Revenue 10,000
Paid salaries of $28,000. correct answers DECREASE Cash (28,000) and Decrease Salaries and
Wages Expense (28,000)
Paid a dividend of $11,000 to shareholders. correct answers DECREASE Cash (11,000) and
DECREASE of Dividends of (11,000)
Stockholders invest $30,000 in exchange for common stock of the corporation. correct answers
INCREASE Cash 30,000 and INCREASE 30,000 of Common Stock
