B Goode Has the Following Transactions During April of the Current

question 185

Essay

B. Goode has the following transactions during April of the current year. Indicate
(a) the effect on the accounting equation and (b) the debit-credit analysis.
Apr. 1 Opens a law office, investing $20,000 in cash.
4 Pays rent in advance for 6 months, $10,800 cash.
16 Receives $8,000 from clients for services provided.
27 Pays secretary $3,000 salary.

---

Definitions:

Continental Crust

The thick, buoyant part of Earth's crust that forms the continents, characterized by a diverse composition of rock types.

Decompression Melting

Melting that occurs when rock ascends in the Earth's mantle, reducing pressure and causing it to melt without heating.

Mantle-Derived Magmas

Refers to magmas that originate from the Earth's mantle, the thick layer of silicate rock between the crust and the core.

Continental Crust

The thick, generally older part of the Earth's crust that constitutes the continents and continental shelves, distinct from oceanic crust.