Transaction analysis: King Toot's, Ltd. provides music lessons to customers. The accountant for King Toot's...
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Transaction analysis: King Toot's, Ltd. provides music lessons to customers. The accountant for King Toot's observed the following transactions which occurred during July 2021. For each transaction, describe the effect of the transaction on the accounting equation. For example, in transaction a): 1) assets increase $10,000 and 2) SHE increases $10,000. a. Issued 1,000 shares of common stock for $10 per share. Assets increase $10,000; SHE increases $10,000 (1,000 shares * $10 per share). b. Provided $5,000 worth of music lessons to customers on account. C. Paid $2,950 in cash for employee wages for July 2021. d. Purchased office supplies for $850 on account. e. Paid $3,100 in cash for rent for July 2021. f. Paid $200 in cash to creditors on accounts payable. g. Received $4,100 in cash from customers as payment on their accounts receivable
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