Question

Jackson's Catering Company provided cookies worth $3,000 to the local college. The college paid immediately. Record this transaction in Jackson's accounting equation by:

Answer 1

Increasing Cash and Increasing Revenue

Step-by-step explanation:

As Jackson's Catering Company paid immediately by the college this transaction will be recorded in Jackson's accounting equation as Increasing Cash and Increasing Revenue.

Increase in equity or asset earned from the company activities is known as Revenue.

When a company is directly paid then there is increase in the revenue and cash.