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For the following transactions, choose the correct analysis of the transaction: Business received $5,000 cash from clients for services that it has promised to provide
For the following transactions, choose the correct analysis of the transaction: Business received $5,000 cash from clients for services that it has promised to provide next year Increase ASSETS and increase REVENUE X Business received $5,000 cash for services provided to clients in the current period Increase ASSETS and increase REVENUE Increase ASSETS and increase LIABILITIES Business performed $10,000 in services to clients on account (i.e., the business will receive payment from its customers in a later period) X Business distributed $4,000 cash to its stockholders Decrease ASSETS and increase DIVIDENDS Business paid $6,000 cash for a two-year insurance policy Decrease ASSETS and decrease EXPENSES X Business paid $20,000 cash for equipment Decrease ASSETS and increase EXPENSES X Business paid $2,000 cash in wages to its employees Decrease ASSETS and increase EXPENSES Business received $10,000 in cash from stockholders in exchange for stock in the company Increase ASSETS and increase COMMON STOCK
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