Tiny Town Kennel earns service revenue by caring for the pet

Tiny Town Kennel earns service revenue by caring for the pets of customers. T Town Kennel is organized as a sole proprietorship and owned by Earle Martin the past month, Tiny Town Kennel has the following transactions: a. Received $520 cash for service revenue earned. iny b. Paid $325 cash for salaries expense. c. Martin contributed $1,000 to the business in exchange for capital. d. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet. e. Received utility bill of $85, which will be paid next month. f. Martin withdrew $100 cash. Indicate the effects of the business transactions on the accounting equation for Town Kennel. Transaction (a) is answered as a guide. a. Increase asset (Cash): Increase equiy (Service Revenue

Solution

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Particulars a) Increase Assets (cash), Increase equity (Service revenue) b) Decrease Assets (Cash), decrease equity (salaries expense) c) Increase Assets (Cash), Increase equity (Capital) d) Increase Assets (Accounts receivable), Increase equity (revenue) e) Decrease Equity (Utility expense), Increase Liability (Account Payable) f) Decrease Assets (Cash), Decrease Equity (Drawings)