For each transaction, give the effect on the accounts in terms of increase, decrease
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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 Summary
The solution shows the transactions and their effect to various accounts - whether increase or decrease in the account.
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.
...
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