Describe the effect of each transaction on assets

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Reference no: EM131770798

Question: Dos Sonatas Elect Rotech Services Company entered into these transactions during August 2014,

1. Purchased computers for office use for Element-40000 from Toshiba on account.

2. Purchased spare parts in the amount of Element 1700, Element300 worth of supplies were immediate used

3. Received C2500 as the deposit for the services to be performed in September

4. Paid Element 5000 cash for August rent of the warehouse.

5. Provided computer services to Carlson Construction company for Element8000 cash.

6. Incurred maintenance expense for August of Element 1000 on account

7. Paid Electric West Power Co Element I 1000 cash for energy usage in May.

8. Stockholders invested an additional Element 50000 in the business in exchange for common stock of the company.

9. Received Element 12000 cash from customers for contracts billed in July.

10. Paid Toshiba for the computes purchased in (1).

11. Dividends declared and paid. Element 3000.

Instructions: Describe the effect of each transaction on assets, liabilities and stockholder's equity in the following way as shown in the next paragraph. For instance, the correct answer for the first transaction is increase in assets (Equipment) and increase in liabilities (acc payable), by Element 40000 both accounts.

Reference no: EM131770798

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