1
Week 2
Analyzing the Effect of Transactions
Selected transactions for Thyme Advertising Company, Inc. are listed below.
Describe the effect of each transaction on assets, liabilities, and stockholders' equity by typing "Yes" in the ap
For example, the answer to #1 is increase in assets and increase in stockholders' equity and is filled in below:
Ass
Increase
1. Issued common stock to investors in exchange for cash received from investors. Yes
2. Paid monthly rent.
3. Received cash from customers when service was performed.
4. Billed customers for services performed. Yes
5. Paid dividend to stockholders. Yes
6. Incurred advertising expense on account.
7. Received cash from customers billed in (4).
8. Purchased additional equipment for cash.
9. Purchased equipment on account.
Write a minimum 100-word response (total response for all 9 transactions) describing the effect of each trans
An increa
1. Issued common stock to investors in exchange for cash received from investors. A decreas
An increa
2. Paid monthly rent.
An increa
3. Received cash from customers when service was performed.
A decreas
4. Billed customers for services performed.
5. Paid dividend to stockholders.
An incre
A decreas
, 2
6. Incurred advertising expense on account.
7. Received cash from customers billed in (4).
A decreas
8. Purchased additional equipment for cash.
Week 2
Analyzing the Effect of Transactions
Selected transactions for Thyme Advertising Company, Inc. are listed below.
Describe the effect of each transaction on assets, liabilities, and stockholders' equity by typing "Yes" in the ap
For example, the answer to #1 is increase in assets and increase in stockholders' equity and is filled in below:
Ass
Increase
1. Issued common stock to investors in exchange for cash received from investors. Yes
2. Paid monthly rent.
3. Received cash from customers when service was performed.
4. Billed customers for services performed. Yes
5. Paid dividend to stockholders. Yes
6. Incurred advertising expense on account.
7. Received cash from customers billed in (4).
8. Purchased additional equipment for cash.
9. Purchased equipment on account.
Write a minimum 100-word response (total response for all 9 transactions) describing the effect of each trans
An increa
1. Issued common stock to investors in exchange for cash received from investors. A decreas
An increa
2. Paid monthly rent.
An increa
3. Received cash from customers when service was performed.
A decreas
4. Billed customers for services performed.
5. Paid dividend to stockholders.
An incre
A decreas
, 2
6. Incurred advertising expense on account.
7. Received cash from customers billed in (4).
A decreas
8. Purchased additional equipment for cash.
