Daniels Company made the following selected transactions during May: 1. Received cash from sale of stock, $\$ 55,000$
2. Paid creditors on account, $\$ 7,000$
3. Billed customers for services on account, $\$ 2,565$
4. Received cash from customers on account, $\$ 8,450$
5. Paid dividends to stockholders, $\$ 2,500$
6. Received the utility bill, $\$ 160$, to be paid next month Indicate the effect of each transaction on the accounting equation by:
(a) Account type - (A)assets, (
L)liabilities, (S
E)stockholders' equity, (
R)revenue, and (
E)expense b) Name of account c) The amount by of the transaction d) The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.

Question

Daniels Company made the following selected transactions during May: 1. Received cash from sale of stock, $\$ 55,000$
2. Paid creditors on account, $\$ 7,000$
3. Billed customers for services on account, $\$ 2,565$
4. Received cash from customers on account, $\$ 8,450$
5. Paid dividends to stockholders, $\$ 2,500$
6. Received the utility bill, $\$ 160$, to be paid next month ​ Indicate the effect of each transaction on the accounting equation by:
(a) Account type - (A)assets, (
L)liabilities, (S
E)stockholders' equity, (
R)revenue, and (
E)expense b) Name of account c) The amount by of the transaction d) The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.

Quizplus · Accepted Answer

The Answer of Daniels Company made the following selected transactions during May: 1. Received cash from sale of stock, $\$ 55,000$
2. Paid creditors on account, $\$ 7,000$
3. Billed customers for services on account, $\$ 2,565$
4. Received cash from customers on account, $\$ 8,450$
5. Paid dividends to stockholders, $\$ 2,500$
6. Received the utility bill, $\$ 160$, to be paid next month ​ Indicate the effect of each transaction on the accounting equation by:
(a) Account type - (A)assets, (
L)liabilities, (S
E)stockholders' equity, (
R)revenue, and (
E)expense b) Name of account c) The amount by of the transaction d) The direction of change (increase or decrease) in the account affected Note: Each transaction has two entries.

Daniels Company Made the Following Selected Transactions During May: 1 $55,000\$ 55,000$55,000

Daniels Company Made the Following Selected Transactions During May: 1 $\$ 55,000$