Listed Below Are the Transactions for Clowns and Magic Company

question 58

Essay

Listed below are the transactions for Clowns and Magic Company Limited. For each transaction, determine the amount and the effect on the accounting equation.
1. Purchased a special magic machine for $2,000, making a 20% down payment in cash, the remainder is on account.
2. Purchased $350 in magic supplies for cash.
3. Billed customers $1,500 for magic shows.
4. Purchased portable magic machine for children's event for $500, fully financed by a bank loan.
5. Collected $800 from customers for services previously billed.
6. Paid balance owing on special magic machine.
7. Incurred travel expenses of $85 on account.
8. Completed party services for customers who pay $440 cash.
9. Paid $1,250 in wages to employees.

---

Definitions:

OFF Condition

A state in which a circuit, device, or system is not activated or is in a power-down mode.

Instruction B

Specific directive or operation code within a computer program or system.

Examine If Closed

A control system operation that checks whether a specific circuit or contact is in a closed (energized) state.

Examine If Open

Examine If Open is a control logic command used in programming, often in PLCs, to check if a circuit or contact is open before executing further instructions.