Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 [ 1 5 points ] Allarco Inc. recorded the following transactions occurred during the month of April. Indicate whether each transaction would cause

Question 2[15 points] Allarco Inc. recorded the following transactions occurred during the month of April. Indicate whether each transaction would cause an increase (+), decrease (-), or has no effect (NE) on each of the components of the accounting equation. If a transaction causes a decrease in one component of the accounting equation and also an increase in the same component but in a different account, select (+/-). A = L + E a) Allarco Inc. provided $4,250 of consulting services for a customer who will pay within 30 days. b) Allarco inc. purchased $27,000 of equipment by borrowing the amount from the bank through a short-term note payable c) Allarco Inc. collected $700 for commissions earned today. d) Harold Cooper, a shareholder of Allarco Inc., received share capital after having transferred to the business a building worth $25,000 and the $3,000 remaining balance of the related short-term note payable. e) Allarco Inc. purchased supplies by paying $300 cash. f) Allarco Inc. paid $1,100 towards the bill from an earlier transaction. g) Allarco Inc. will pay this month's utilities bill of $350 received today, within 30 days. h) $2,400 of furniture purchased on credit in an earlier transaction was found to be damaged. Allarco Inc. returned it to the supplier 1) Harold Cooper (a shareholder), received share capital in Allarco Inc., after investing $45,000 cash and $15,000 worth of supplies in Allarco Inc. i) A bill was received today for last week's $1,750 advertising campaign. It must be paid within 15 days. k) Harold Cooper (a shareholder), received share capital in Allarco Inc., after investing $10,000 cash and $15,000 worth of equipment in Allarco Inc. 1) Harold Cooper (a shareholder), received share capital in Allarco Inc., after investing $15,000 of supplies into the business. m) Allarco Inc. bought $500 of supplies paying $100 cash and $400 on account. n) Harold Cooper (a shareholder), received share capital in Allarco Inc., after investing equipment and supplies into the business worth $35,000 and $15,000, respectively. o) Allarco Inc. interviewed and hired a new employee who will begin working next month and get paid $4,750 per month SAVE AND CLOSE SUBMIT AND MARK

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-30

Authors: John Price, M. David Haddock, Michael Farina

14th edition

978-1259284861, 1259284867, 77862392, 978-0077862398

More Books

Students also viewed these Accounting questions