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For each transaction, give the effect on the accounts in terms of increase, decrease

Problem attached.

For each transaction, give the effect on the accounts, using the format in the example.

Listed below are six transactions engaged in by a services company. For each transaction, give the effect on the accounts, using the format in the example.

Example: Bought equipment for cash

Increase Equipment
Decrease Cash

Note: do not use debits and credits in your answer, just increase and decrease. Consistency in format will make the grading easier.

1. Billed customer A for work performed.
2. Borrowed money from the bank on a short-term note.
3. Received payment from customer B for work to be performed later.
4. Received a bill for current period's electricity usage.
5. Purchased office supplies on credit.
6. Received payment from customer A.

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Solution Preview

1. Billed customer A for work performed.
Increase Services Revenue
Increase Account Receivable

2. Borrowed money from the bank on a short-term note.
...

Solution Summary

The solution shows the transactions and their effect to various accounts - whether increase or decrease in the account.

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