Transactions made by Pharoah Company, a law firm, for the month of March are as...
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Transactions made by Pharoah Company, a law firm, for the month of March are as follows. 1. The company performed $ 40,000 of services for customers, on credit. 2. The company received $ 40,000 in cash from customers who had been billed for services (in transaction 1). 3. The company received a bill for $ 2,000 of advertising, but will not pay it until a later date. 4. The company paid a dividend of $ 6,500 in cash to stockholders. Prepare a tabular analysis that shows the effects of these transactions on the accounting equation. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g.-15,000 or parenthesis (15,000).) Assets Liabilities Cash Accounts Receivable Accounts Payable Comm (1) $ 40000 $ $ 40000 $ (2) $ 40000 $ 40000 $ (3) $ i $ 2000 $ $ (3) $ 2000 1 (4) $ 6500 $ $ 6500 $ e Textbook and Media
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