Daniels Company Made the Following Selected Transactions During May

Essay

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.