Transactions made by Ivanhoe Company for the month of March

Transactions made by Ivanhoe Company for the month of March are shown below. 1. The company performed $19,650 of services for customers on account. 2. The company received $19,650 in cash from customers who had been billed for services [in transaction (1) 3. The company received a bill for $3,450 of advertising but will not pay it until a later date 4. Ivanhoe Company paid a cash dividend of $4,000 Prepare a tabular analysis that shows the effects of these transactions on the expanded accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Ilustration 3-3 for example.) Liabilities+ Stockholders\' Equity Cash + Accounts Receivable = Accounts Payable + Common Stock + Retained Earnings RevenuesExpensesDividends

Solution

solution :-

	Cash	Accounts Receivable	Accounts Payable	Common Stock	Retained Earning
					Revenues	Expenses	Dividends
1)		+$19650			+$19650
2)	+$19650	-$19650
3)			+$3450			-$3450
4)	-$4000						-$4000