Question
Consider the following transactions during the month of September, 2016 for Company A: - Received cash from the sale of stock, $55,000. - Paid creditors
Consider the following transactions during the month of September, 2016 for Company A: - Received cash from the sale of stock, $55,000. - Paid creditors on account, $7,000. - Billed customers for services on account, $2,565. - Received cash from customers on account, $8,450. - Paid dividends to stockholders, $2,500. - Received the utility bill, $160, but it will be paid next month. Assuming that all these transactions were correctly posted to Company A's general ledger, which of the following statements are true? (There are multiple true statements and you must select only those that are true in order to get full credit for the question.)
The company's Accounts Payable account will decrease by $6,840 after all these transactions are posted.
The company's Common Stock account will increase by $55,000 after all these transactions are posted.
The net effect on the Cash account after all these transactions are posted is an increase of $53,950.
The company's Accounts Receivable account will decrease by $5,885 after all these transactions are posted.
The net impact on the company's revenue accounts after all these transactions are posted is an increase of $2,725.
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