29 November, 17:57

# The following transactions occur for Badger Biking Company during the month of June:(a) Provide services to customers on account for \$50,000.(b) Receive cash of \$42,000 from customers in (a) above.(c) Purchase bike equipment by signing a note with the bank for \$35,000.(d) Pay utilities of \$5,000 for the current month.Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.Assets = Liabilities + Stockholder's equity

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1. 29 November, 19:56
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Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Assets = Liabilities + Stockholder's equity

Explanation:

(a) Provide services to customers on account for \$50,000.

Account receivable=equity (net income (revenue)

50000=50000

(b) Receive cash of \$42,000 from customers in (a) above.

Cash = - (account receivable)

(c) Purchase bike equipment by signing a note with the bank for \$35,000.

equipment=account payable

(d) Pay utilities of \$5,000 for the current month.

-cash=-equity (expenses)