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Bradenton Biking Company sells high performance road and mountain bikes. The following transactions occurred for the month of September: a. Provide services to customers
Bradenton Biking Company sells high performance road and mountain bikes. The following transactions occurred for the month of September: a. Provide services to customers on account for $38,000. b. Receive cash of $30,000 from customers in (a) above. c. Purchase bike equipment by signing a note with the bank for $23,000. d. Pay utilities of $3,800 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (Decreases to account classifications should be entered as a negative.) Answer is complete but not entirely correct. Transaction Assets Stockholders' Liabilities. Equity (a) $ 38,000 $ 38,000 (b) increase $ 38,000 $ 0 $ 0 (b) decrease $ 38,000 (c) $ 23,000 $ 23,000 $ (d) $ 3,800 $ $ 3,800
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