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Background Information: Donald Duck and Friends began operations on January 1, 2017 The following events occurred during the year 1 Provided lawn services on account
Background Information: Donald Duck and Friends began operations on January 1, 2017 | |||||||||||
The following events occurred during the year | |||||||||||
1 | Provided lawn services on account for $90,000 | ||||||||||
2 | Collected $82,000 cash from accounts receivable | ||||||||||
3 | Paid Salaries to Mickey for the year of $30,000 | ||||||||||
4 | Adjusted A/R to have an ending balance 0f $1,800 based on percent of Revenue method | ||||||||||
a) Complete the accounting equation for the different transactions. | |||||||||||
Donald and Friends Company | |||||||||||
Accounting Equation | |||||||||||
Event | Assets | Equity | |||||||||
Cash | + | Accounts Receivable | - | Allowance | = | Retained Earnings | |||||
1 | Service Revenue | ||||||||||
2 | |||||||||||
3 | Salaries Expense | ||||||||||
4 | Uncollectible accounts expense | ||||||||||
Total | $ - | + | $ - | - | $ - | = | $ - |
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