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Question: Boilermaker House Painting Company incurs the following transactions for September.

1. Paint houses in the current month for $15,000 on account.

2. Purchase painting equipment for $16,000 cash.

3. Purchase office supplies on account for $2,500.

4. Pay workers' salaries of $3,200 for the current month.

5. Purchase advertising to appear in the current month, $1,200.

6. Pay office rent of $4,400 for the current month.

7. Receive $10,000 from customers in (1) above.

8. Receive cash of $5,000 in advance from a customer who plans to have his house painted in the following month.

Required: For each transaction, describe the dual effect on the accounting equation. For example, for the first transaction,

(1) assets increase and

(2) stockholders' equity increases.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92328334

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