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 - Aassets, Lliabilities, SEstockholders' equity, Rrevenue, and Eexpense
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.