Large City Kennel earns service revenue by caring for the pets of customers. Large City Kennel is
Question:
Large City Kennel earns service revenue by caring for the pets of customers. Large City Kennel is organized as a sole proprietorship and owned by Eberly Minx. During the past month, Large City Kennel has the following transactions:
a. Received \($520\) cash for service revenue earned.
b. Paid \($325\) cash for salaries expense.
c. Minx contributed \($1,000\) to the business in exchange for capital.
d. Earned \($640\) for service revenue, but the customer has not paid Large City Kennel yet.
e. Received utility bill of \($85,\) which will be paid next month.
f. Minx withdrew \($100\) cash.
Indicate the effects of the business transactions on the accounting equation for Large City Kennel. Transaction (a) is answered as a guide. Use the following accounts: Cash; Accounts Receivable; Accounts Payable; Minx, Capital; Minx, Withdrawals; Service Revenue; Salaries Expense; and Utilities Expense.
Step by Step Answer:
Horngrens Accounting The Financial Chapters
ISBN: 9780137884858
14th Edition
Authors: Brenda Mattison, Tracie Miller-Nobles