Pandey Inc.had the Following Activities During the Month

question 59

Essay

Pandey Inc.had the following activities during the month:
A.Borrowed $7,000,000 cash,signing a promissory note.
B.Bought a building for $800,000,paying $200,000 in cash and signing a promissory note for $600,000.
C.Rented equipment at a cost of $10,000 per month and issued a check covering six months' rent.
D.Provided $104,000 of services and billed customers.
E.Purchased $30,000 of supplies on account.
F.Received a utility bill for the current period in the amount of $1,200.
G.Raised sales prices on 200 units from $400 per unit to $440 per unit.
H.Received a 50% deposit from a customer on a $20,000 order to be filled next month.
Required:
Analyze each of the activities (A)through (H)above with the goal of indicating their effects on the basic accounting equation by completing the table below.Indicate the accounts and amounts involved.Include a plus (+)or minus (-)sign before each number to show its effect on the accounting equation.If the activity should not to be recorded as a transaction,enter the word "None" in the first column for that activity.

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over time, crucial for the validity of research findings and experiments.

Biased

Showing an unjustifiable favoritism or prejudice towards something or someone.

Biased

Showing an unjustifiably favorable or unfavorable inclination towards something or someone, often without considering the facts objectively.

Stanford-Binet IQ

A standardized test that assesses intelligence and cognitive abilities, forming a basis for an intelligence quotient (IQ) score.