This question and the next 5 questions are a set These are multiple answer questions Each of the questions will need three of the choices checked for a complete answer You will need two choices to show the balance sheet effect AND one choice to show the income statement effect You need to get the entire question right for credit (It is a single transaction, despite this presentation ) Remember that revenues increase equity AND net income Expenses decrease equity AND net income Nemo Inc is a cleaning company with a monthly accounting period The following transactions take place in October Nemo cleans offices and homes on a contract basis and also on a call in basis for one time cleaning This content is copyrighted (Hint Nemo will only recognize revenues for services earned during the current month of October, and only recognize an expense for items consumed or used during the month of October ) Transaction to record 10 1 On October 1, Nemo pays the employees $30,000 for their September salaries a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income 10 2 Nemo pays $2,400 for Octobers rent a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income 10 5 Nemo receives $10,000 for services performed last month a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income 10 12 Nemo pays $6,000 for a 6 month insurance policy that begins on November 1 a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income 10 24 Nemo receives $4,800 for a cleaning contract that will begin on December 1 a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income 10 28 Nemo cleans a home before a party and leaves the client a bill for $200 The bill is due on November 15 a Assets increase b Assets decrease c Liabilities increase d Liabilities decrease e Equity increases f Equity decreases g Net income increases h Net income decreases i No effect on net income

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This question and the next 5 questions are a set. These are multiple answer questions. Each of the questions will need three of the choices

This question and the next 5 questions are a set.

These are multiple answer questions. Each of the questions will need three of the choices checked for a complete answer. You will need two choices to show the balance sheet effect AND one choice to show the income statement effect. You need to get the entire question right for credit. (It is a single transaction, despite this presentation.)

Remember that revenues increase equity AND net income. Expenses decrease equity AND net income.

Nemo Inc. is a cleaning company with a monthly accounting period. The following transactions take place in October. Nemo cleans offices and homes on a contract basis and also on a call-in basis for one-time cleaning. This content is copyrighted.

(Hint: Nemo will only recognize revenues for services earned during the current month of October, and only recognize an expense for items consumed or used during the month of October.)

Transaction to record: 10/1: On October 1, Nemo pays the employees $30,000 for their September salaries.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income

10/2: Nemo pays $2,400 for Octobers rent.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income

10/5: Nemo receives $10,000 for services performed last month.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income

10/12: Nemo pays $6,000 for a 6-month insurance policy that begins on November 1.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income

10/24: Nemo receives $4,800 for a cleaning contract that will begin on December 1.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income

10/28: Nemo cleans a home before a party and leaves the client a bill for $200. The bill is due on November 15.

	a.	Assets increase
	b.	Assets decrease
	c.	Liabilities increase
	d.	Liabilities decrease
	e.	Equity increases
	f.	Equity decreases
	g.	Net income increases
	h.	Net income decreases
	i.	No effect on net income