singerteedy2605
Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

D. What is the effect on XYZ's accounting equation in June when it remitted the $10,000?​

Sagot :

s1648

Answer:

Determination of effect of the listed transactions of Nikea Inc. on the accounting equation:

It is given that In May 2013, Nikea recorded the transaction by debiting accounts receivable for $10,000 and crediting service revenues for $10,000.

Accounts receivable is an asset and debiting assets means increasing the asset. A Service revenue is part of equity and crediting the revenue means increasing the equity.

Hence we can say that this transaction as increased the assets and equity of Nikea Inc.

Explanation:

Determination of effect of the listed transactions of Nikea Inc. on the accounting equation:

It is given that In May 2013, Nikea recorded the transaction by debiting accounts receivable for $10,000 and crediting service revenues for $10,000.

Accounts receivable is an asset and debiting assets means increasing the asset. A Service revenue is part of equity and crediting the revenue means increasing the equity.

Hence we can say that this transaction as increased the assets and equity of Nikea Inc.

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.