Question

Windsor, Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $1,850 cash. 16 Receives $400 from clients for services performed. 27 Pays secretary $1,760 salary.

Answer 1

a) the accounting equations keeps equals

b) in the explanation at the bottom

Step-by-step explanation:

Agu 1.

a)the effect on the accounting equation

1. Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock.

the asset keeps the same

Pays insurance in advance for 6 months, $1,850 cash

the asset keeps the same

Receives $400 from clients for services performed

the asset increase because the cash increase +$400 and the accounts receivable decreased

Pays secretary $1,760 salary.

The cash decrease because paid -$1,760 and the account of the salaries to pay decrease -$1.760

b) the debit-credit analysis

debit credit

Cash -$4.100 assets account

investing +4100 assets account

Cash -$1.850 assets account

Pays insurance +1.850 assets account

Cash +400 assets account

Acc receivable -400 assets account

cash -1.760 assets account

wages to pay -1.760 liabilities account