Indicate the Effects on the Accounting Equation of the Following

question 37

Essay

Indicate the effects on the accounting equation of the following business transactions of Garland Service
Company for b)to d)below.The company is a sole proprietorship.Use proper account titles.Transaction a)is answered as a guide.
a)Trent Garland contributed cash to the business in exchange for capital.
b) Collected cash on accounts receivable (created 20 days earlier).
c) Purchased office supplies on account.
d) Paid cash for the current month's electric bill.

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Definitions:

Contingent Consideration

Future payment obligations in a business combination or other arrangements that depend on specific outcomes or achievements.

Goodwill

The intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Share Issue Costs

The expenses associated with issuing new shares of stock, including legal, accounting, and underwriting fees.

Fair Value

The valuation expected from selling an asset or the outlay needed to reassign a liability in a coordinated market transaction as determined on the measurement date.