Indicate the Effects on the Accounting Equation of the Following

question 62

Essay

Indicate the effects on the accounting equation of the following business transactions of Pilgrim Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide.
a) Received cash from Maxwell Jones; issued common stock to him.
b) Received cash from a customer on accounts receivable.

c) Paid cash dividends to the stockholder.

d) Paid cash on accounts payable.

---

Definitions:

Internal Validity

Extent to which all factors that could extraneously affect a study’s results are controlled within a laboratory study.

Experimental Group

The group in a scientific study that receives the treatment or intervention being tested, as opposed to the control group which does not.

Control Group

In an experimental study, group of subjects whose experience resembles that of the experimental group in all ways except that they do not receive the key manipulation.

Wait List Control

A research method where participants are assigned to a waiting list and receive the intervention after the active treatment group, used as a control condition in studies.