Daniels Company Is Owned and Operated by Thomas Daniels

question 52

Essay

Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1.Received cash from owner as additional investment, $55,000.
2.Paid creditors on account, $7,000.
3.Billed customers for services on account, $2,565.
4.Received cash from customers on account, $8,450.
5.Paid cash to owner for personal use, $2,500.
6.Received the utility bill, $160, to be paid next month.

?Indicate the effect of each transaction on the accounting equation by:
(a)Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense
b)Name of accounting equation element
c)The amount of the transaction
d)The direction of change
(increase or decrease) in the account affected
Note: Each transaction has two entries.?

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Definitions:

Activities of Daily Living

Routine tasks that individuals do every day without needing assistance, such as eating, bathing, dressing, and mobility.

Independent

Free from outside control; not depending on another's authority or on specific factors.

Maslow's Hierarchy

A theory in psychology that categorizes human needs into a five-tier model, from basic (such as food and shelter) to complex (such as self-fulfillment).

Mental Illness

Refers to a wide range of mental health conditions that affect mood, thinking, and behavior.