3.2 part B

Cnspter 3 The Accounting Cycle: Capturing Economle Events b. Indicate the effects of each transaction on the company's assets, liahilities,-and owners' cquiry for the month of February. Organize your analysis in tabular form as shown for the February ELM 3.2A Eovironmental Services, Inc., performs verious tests on wells and seplic systems. A Iew or us ers are required to make full payment within 30 daye. charging the remainder on the company's 30 -day accoumi at Penn $3,800. paying 5800 cash and plies are expected to last several months. 3. On August 5. the company retumed in Penn Chemicals $100 of tesung supplies that were nut needed. The retum of there supplies reduced by $100 the anount owed to Perin Chemicalh. 4. On August 17, the company issued en additional 2,500 shares of capithl stock at 58 per shart. The cash raised will be used .0 purchase new testing equipmeni in September. 5. On August 22, the company received $600 cash from customers it had billed on August 1 . 6. On August 29, the company paid its outstanding account payable to Penn Chemicals. 7. On August 30, a cash dividend totsling $6,800 was Jeclared and paid to the compaey b stockhoiders. Instructions 1. Prepare an analysis of each of the abuve transactions. Transaction 1 serves as an exaniple dl the form of analysis to be used. 1. (a) The asset Accounts Receivabie was increased. Increases in assets are recorded by debits. Debil Accounts Receivable $2.500. (h) Revenue has been earbed. Revenue increases owners' equity. increases in oprscr' equity are recurded by credits. Credil Teating Service Revenue $2,500. b. Prepare joumal entries, including explanations, for the above transactions. c. How does the realizarion principle influence the manner in which the August 1 billing to cus tomers is recorded in the acesunting records? d. How doen the matching principle influence the manner in which the August 3 purchasa testing supplies is rocorded in the eccounting records? POBLEM 3.3A Weids Surveying, Inc., provides lend eurveying tervices. During Septeruber, ite transactions Iacl Journalizing and ded the following: Sept 1 Peid rent for the month of September, $4,400