Selected Transactions for the Sleezer Company Are Listed Below

question 161

Essay

Selected transactions for the Sleezer Company are listed below. List the number of the transaction and then describe the effect of each transaction on assets, liabilities, and stockholders' equity.
Sample: Made initial cash investment in the business.
The answer would be-Increase in assets and increase in stockholders' equity.
1. Paid monthly utility bill.
2. Purchased new display case for cash.
3. Paid cash for repair work on security system.
4. Billed customers for services performed.
5. Received cash from customers billed in transaction 4.
6. Dividends paid to owners.
7. Incurred advertising expenses on account.
8. Paid monthly rent.
9. Received cash from customers when service was rendered.

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Definitions:

Credit Sale

A type of transaction where goods or services are provided to a customer with an agreement that payment will be made at a later date.

Customer Payment

Money received from customers as payment for goods or services.

Create Invoice

The process of generating a bill for goods delivered or services provided, detailing the amount due from the customer.

Collections Reports

Detailed reports that track the status of payments due from customers, often highlighting overdue payments or accounts receivable.