Question

SF1-10 (book/static) Question Help Elaine's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine's Inflatables is organized as a corporation. During the past month, Elaine's Inflatables has the following transactions (Click the icon to view the Elaine's Inflatables transactions.) Indicate the effects of the business transactions on the accounting equation for Elaine's Inflatables. Transaction (a) is answered as a guide. Use the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock Dividends, Service Revenue, Wages Expense Rent Expense, and Utilities Expense a. Received contributions of $10,000 in exchange for common stock. (Transaction (a) is answered as a guide.) a. Increase asset (Cash) Increase equity (Common Stock) b. Purchased equipment for $5,000 on account b.

Answer 1

Indicate the effects of the business transactions on the accounting equation for Elaine's Inflatables? Answer: a. Increase asset Cash Increase equity Common Stock b. Increase asset Equipment Increase Liability Accounts Payable c. Increase asset Supplies Decrease asset Cash d. Increase asset Cash Increase Income Service Revenue e. Decrease asset Cash Increase Expense Wages Expense f. Decrease asset Cash Increase Expense Dividends 9. Increase asset Accounts Receivable Increase Income Service Revenue h. Decrease asset Cash Increase Expense Rent Expense i. Increase Expense Utilities Expense Increase Liability Accounts Payable If you need any further explanation, kindly request in the comment section, glad to be helpful.