Question
The Erin Company engaged in the following transactions with its customers in August. August 1: provided services to customers who agreed to pay $900 by
The Erin Company engaged in the following transactions with its customers in August. August 1: provided services to customers who agreed to pay $900 by September 1. August 8: received $1,500 from customers serviced in July. August 15: received $1,100 from customers for services to be provided to them in September. August 28: provided services to customers and received $2,500. Show the total effects on the Company's resources and sources of resources resulting from its August cash transactions.
a. Assets increased by $3,600, liabilities increased by $1,100, and stockholders' equity increased by $2,500.
b. Assets increased by $4,500 and stockholders' equity increased by $4,500.
c. Assets increased by $6,000, liabilities increased by $1,100, and stockholders' equity increased by $4,900.
d. Assets increased by $4,500, liabilities increased by $1,100, and stockholders' equity increased by $3,400.
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