The Accountant for Scott Industries Prepared the Following List of Account

Essay

The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31: $$\begin{array} { l r l } \text { Fees earned } & \$ 165,000 & \text { Cash } \\\text { Accounts receivable } & 14,000 & \text { Selling expenses } \\\text { Equipment } & 64,000 & \text { Common stock } \\\text { Accounts payable } & 12,000 & \text { Interest income } \\\text { Salaries \& wages expense } & 40,000 & \text { Frepaid rent } \\\text { Income taxes payable } & 5,000 & \text { Income taxes expense } \\\text { Notes payable } & 20,000 & \text { Rent expense }\end{array}$$
-Daniels Company made the following selected transactions during May:
1. Received cash from sale of stock, $55,000
2. Paid creditors on account, $7,000
3. Billed customers for services on account, $2,565
4. Received cash from customers on account, $8,450
5. Paid dividends to stockholders, $2,500
"6. Received the utility bill, $160, to be paid next month
Indicate the effect of each transaction on the accounting equation by:
a) Account type - A)assets, L)liabilities, SE)stockholders' equity, R)revenue, and E)expense
b) Name of account
c) The amount by of the transaction
d) The direction of change increase or decrease) in the account affected Note: Each transaction has two entries. $\begin{array}{|l|l|l|l|l|l|l|l|l|}\hline\text { Entry }&&&&&\text { Entry }\\\hline& \begin{array}{l}\text { Account } \\\text { Type a) }\end{array} & \begin{array}{l}\text { Name of } \\\text { Account } \\\text { b) }\end{array} & \begin{array}{l}\text { Amount } \\\text { c) }\end{array} & \begin{array}{l}\text { Increase or } \\\text { Decrease } \\\text { d) }\end{array} & \begin{array}{l}\text { Account } \\\text { Type a) }\end{array} & \begin{array}{l}\text { Name of } \\\text { Account b) }\end{array} & \begin{array}{l}\text { Amount } \\\text { c) }\end{array} & \begin{array}{l}\text { Increase or } \\\text { Decrease } \\\text { d) }\end{array} \\\hline 1 & & & & & & & & \\\hline 2 & & & & & & & & \\\hline 3 & & & & & & & & \\\hline 4 & & & & & & & & \\\hline 5 & & & & & & & & \\\hline 6 & & & & & & & & \\\hline\end{array}$ "