Analyze the Following Transactions in Terms of Their Effect on the Basic

question 214

Essay

Analyze the following transactions in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded.
(1) Issued stock to investors for $20,000 in cash.
(2) Purchased supplies on credit for $700.
(3) Billed customers $1,000 for services provided.
(4) Paid for supplies purchased in transaction 2.
(5) Paid dividends of $300 cash to stockholders.
(6) Received half from customers billed in transaction 3.
(7) Received and paid utility bill for $100.

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Definitions:

Extinction

In behavioral psychology, the process by which a previously reinforced behavior is weakened by no longer being reinforced, leading to a decrease in the occurrence of the behavior.

Generalization

The process by which individuals apply learned behaviors and responses to similar but new situations.

Spread Of Effect

The diffusion of emotional responses or behaviors from one context to another; in learning, it refers to the generalization of behaviors to similar stimuli.

Generalization

The ability to apply learned skills or responses to new situations or stimuli that are similar to the original conditions.