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During December, Cynthiana Refrigeration Service engaged in the following transactions: a. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $15,000 cash. b. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,500 in cash for the service call. c. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $50,000. Cynthiana paid $8,500 down and signed a 1-year note for the balance. d. Cynthiana received a $2,400 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $2,400 in early January. e. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $500 cash. Cynthiana gave the turkeys to its employees as a Christmas gift. Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item. Stockholders' Equity Contributed Retained Assets Liabilities Capital + Earnings а. 15,000 -15,000 b. 1,500 1,500 C. 41,500 41,500 d. 2,400 2,400 е. -500 -500

During December, Cynthiana Refrigeration Service engaged in the following transactions: a. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $15,000 cash. b. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,500 in cash for the service call. c. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $50,000. Cynthiana paid $8,500 down and signed a 1-year note for the balance. d. Cynthiana received a $2,400 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $2,400 in early January. e. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $500 cash. Cynthiana gave the turkeys to its employees as a Christmas gift. Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item. Stockholders' Equity Contributed Retained Assets Liabilities Capital + Earnings а. 15,000 -15,000 b. 1,500 1,500 C. 41,500 41,500 d. 2,400 2,400 е. -500 -500

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...
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i need help with the retained earnings I orginally did 15,000 and it's wrong. -15000 might be wrong also/

Transaction Analysis During December, Cynthiana Refrigeration Service engaged in the following transactions: a. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $15,000 cash. b. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,500 in cash for the service call. c. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $50,000. Cynthiana paid $8,500 down and signed a 1-year note for the balance. d. Cynthiana received a $2,400 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $2,400 in early January. e. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $500 cash. Cynthiana gave the turkeys to its employees as a Christmas gift. Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item. Stockholders' Equity Contributed Retained Assets Liabilities + Capital + Earnings %3D а. 15,000 -15,000 b. 1,500 1,500 C. 41,500 41,500 d. 2,400 2,400 е. -500 -500
Transcribed Image Text:Transaction Analysis During December, Cynthiana Refrigeration Service engaged in the following transactions: a. On December 3, Cynthiana sold a 1-year service contract to Cub Foods for $15,000 cash. b. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,500 in cash for the service call. c. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $50,000. Cynthiana paid $8,500 down and signed a 1-year note for the balance. d. Cynthiana received a $2,400 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $2,400 in early January. e. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $500 cash. Cynthiana gave the turkeys to its employees as a Christmas gift. Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item. Stockholders' Equity Contributed Retained Assets Liabilities + Capital + Earnings %3D а. 15,000 -15,000 b. 1,500 1,500 C. 41,500 41,500 d. 2,400 2,400 е. -500 -500
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