Analyze Each of the Following Transactions in Terms of Their

question 164

Essay

Analyze each of the following transactions in terms of their effects on the accounting equation of Osgood Delivery Service.The company is a sole proprietorship.Enter the correct amounts in the columns of the spreadsheet.
a)James Osgood contributes $75,000 cash to the business in exchange for capital.
b)The business purchases $750 of office supplies on account.
c)The business pays cash to purchase a delivery van for $25,000.
d)Services are performed for clients and $5,000 cash is received.
e)Cash is paid for rent expense,$800 and utilities expense,$400.
f)James Osgood withdraws $1,000 from the business for personal use.

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Definitions:

Earned Revenue

Income a company receives from its business activities, such as sales of goods or services, in contrast to revenue from investments or other sources.

M-form Organization

A type of organizational structure in which a company is divided into semi-autonomous units or divisions, each with its own profit responsibility.

Divisional Conflicts

Disputes or disagreements between different divisions or departments within an organization, often arising from competition for resources, differing objectives, or misaligned incentives.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often based on factors such as risk and benefit.