The Boring Company prepares financial statements monthly (using the accrual method of accounting).
In space below, identify the changes each transaction would create for total assets, liabilities, and owners' equity for the current month.
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Assets
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=
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Liabilities
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+
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Owners' Equity
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Example: Pay a $25 dividend
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-$25
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-$25
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Sell an item to customer for $100 cash (ignore the cost of the item)
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Receive $200 payment from a customer for product purchased last month
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Pay $400 for utility bill from last month
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Pay $500 for current month sales commissions
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