Bombeck Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the…

Bombeck Inc. has the following transactions during August of the current year.

Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis.

Aug. 1 Opens an office as a financial advisor, investing $6,000 in cash in exchange for common stock

4 Pays insurance in advance for 6 months, $1,950 cash.

16 Receives $2,300 from clients for services performed.

27 Pays secretary $1,590 salary.

(a)  Effect on Accounting Equation

(b)  Debit-Credit Analysis

Aug. 1The asset

is

Increased

Decreased

;Debits

Decrease Stockholders’ Equity

Increase Revenues

Increase Stockholders’ Equity

Decrease Assets

Decrease Revenues

Decrease Expenses

Increase Assets

Increase Expenses

the account

is

Increased

Decreased

.Debit

$

Credits

Increase Expenses

Decrease Stockholders’ Equity

Decrease Expenses

Increase Assets

Increase Stockholders’ Equity

Decrease Assets

Increase Revenues

Decrease Revenues

Credit

$

Aug. 4The asset

is

Increased

Decreased

;Debits

Increase Expenses

Increase Revenues

Decrease Stockholders’ Equity

Decrease Revenues

Decrease Expenses

Increase Assets

Increase Stockholders’ Equity

Decrease Assets

the asset

is

Increased

Decreased

.Debit

$

Credits

Increase Assets

Increase Expenses

Decrease Revenues

Decrease Expenses

Increase Stockholders’ Equity

Decrease Assets

Increase Revenues

Decrease Stockholders’ Equity

Credit

$

Aug. 16 The asset

is

Increased

Decreased

;Debits

Decrease Revenues

Decrease Expenses

Increase Expenses

Decrease Stockholders’ Equity

Increase Revenues

Increase Assets

Increase Stockholders’ Equity

Decrease Assets

the revenue

is

Increased

Decreased

.Debit

$

Credits

Decrease Expenses

Decrease Stockholders’ Equity

Increase Assets

Increase Stockholders’ Equity

Decrease Assets

Increase Revenues

Increase Expenses

Decrease Revenues

Credit

$

Aug. 27The expense

is

Increased

Decreased

;Debits

Decrease Assets

Decrease Stockholders’ Equity

Increase Stockholders’ Equity

Decrease Revenues

Increase Revenues

Increase Expenses

Decrease Expenses

Increase Assets

the asset

is

Increased

Decreased

.Debit

$

Credits

Decrease Expenses

Increase Assets

Increase Revenues

Increase Expenses

Decrease Stockholders’ Equity

Increase Stockholders’ Equity

Decrease Assets

Decrease Revenues

Credit

$

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