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Old MathJax webview Letty's Laundry and Dry Cleaning incorporated and started business on January 1, 2016. Letty's Laundry and Dry Cleaning began business by depositing
Old MathJax webview
Letty's Laundry and Dry Cleaning incorporated and started business on January 1, 2016. Letty's Laundry and Dry Cleaning began business by depositing 1 $30,000 in a checking account in the name of Letty's Laundry and Dry Cleaning, Inc. for which capital stock is issued. 2 Borrowed $6,000 from City Bank. 3 Purchased equipment from Washers Wholesale, $16,200. 4 Purchased supplies coting $3,000 from Suds 'n Stuff for cash. 5 Paid one month's rent for business space in Pine Plaza, $1,000. Services provided to customers during January totaled $13,400. 6 All services were paid for in cash. 7 Paid employees for January, $2,240. 8 Received and paid the utility bill, $500. 9 Received nd paid telephone bill, $250. 10 Paid dividends to the stockholders, $2,140. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10) in a vertical column, and inserting at the right of each number the appropriate letter from the following list: C. a. Increase in an asset, decrease in another asset. b. Increase in an asset, increase in a liability. Increase in an asset, increase in stockholders' equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders' equity
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