Indicate the effects on the accounting equation of the following business transactions of ABC Service
Company for b)to d)below.The company is a sole proprietorship.Use proper account titles.Transaction a)is answered as a guide.
a)Mary Johnson,the sole proprietor,contributed cash in exchange for capital.
b) Purchased equipment; signed a note payable.
c) Performed services for a customer on account.
d) At the end of the first month, paid office rent.

Question

Indicate the effects on the accounting equation of the following business transactions of ABC Service
Company for b)to d)below.The company is a sole proprietorship.Use proper account titles.Transaction a)is answered as a guide.
a)Mary Johnson,the sole proprietor,contributed cash in exchange for capital.
b)	Purchased equipment; signed a note payable.
c)	Performed services for a customer on account.
d)	At the end of the first month, paid office rent.

Quizplus · Accepted Answer

The Answer of Indicate the effects on the accounting equation of the following business transactions of ABC Service
Company for b)to d)below.The company is a sole proprietorship.Use proper account titles.Transaction a)is answered as a guide.
a)Mary Johnson,the sole proprietor,contributed cash in exchange for capital.
b)	Purchased equipment; signed a note payable.
c)	Performed services for a customer on account.
d)	At the end of the first month, paid office rent.

Indicate the Effects on the Accounting Equation of the Following