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Analyzing the Effects of Debit and Credit Transactions

Analyze the effect of the following transactions for Sidhu Advertising Company, Inc.

1. Issued commmon stock to investors in exchange for cash received from investors.
2. Paid monthly rent
3. Received cash from customers when service was rendered.
4. Billed customers for services performed.
5. Paid dividend to stockholders.
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.

Solution Preview

For your convenience, I have attached a formatted MS Excel file containing the information posted below.

Accounting Information System-analyze the effect of the transactions Debits and Credits
Analyze the effect of the following transactions for Sidhu Advertising Company, Inc.

Journal Transactions for Sidhu Advertising Company, Inc.
(with sample figures)

1. Issued common stock to investors in exchange for cash received from investors.
Notes
Cash 100,000 Debit to cash
Common Stock 100,000 Credit to common ...

Solution Summary

This posting contains a formatted MS Excel spreadsheet that contains examples that illustrate the effects of debit and credit transactions.

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