Identifying transactions
Grand Canyon Tours Co. is a travel agency. The nine transactions recorded by Grand Canyon Tours during April 2014, its first month of operations, are indicated in the following T accounts:
|
Cash |
Equipment |
Dividends |
||||||||
|
(1) |
75,000 |
(2) |
4,000 |
(3) |
25,000 |
(9) |
5,000 |
|||
|
(7) |
11,000 |
(3) |
3,000 |
|||||||
|
(4) |
2,700 |
|||||||||
|
(6) |
9,000 |
|||||||||
|
(9) |
5,000 |
|||||||||
|
Accounts Receivable |
Accounts Payable |
Service Revenue |
||||||||
|
(5) |
19,500 |
(7) |
11,000 |
(6) |
9,000 |
(3) |
22,000 |
(5) |
19,500 |
|
|
Supplies |
Capital Stock |
Operating Expenses |
||||||||
|
(2) |
4,000 |
(8) |
2,000 |
(1) |
75,000 |
(4) |
2,700 |
|||
|
(8) |
2,000 |
|||||||||
Indicate for each debit and each credit: (a) whether an asset, liability, stockholders’ equity, dividends, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (–). Present your answers in the following form, with transaction (1) given as an example:
|
Account Debited |
Account Credited |
|||
|
Transaction |
Type |
Effect |
Type |
Effect |
|
(1) |
assets |
+ |
Stockholder’s equity |
+ |