Answer:
Accounting equation is as follows:
Assets = Liabilities + Stockholder's Equity
(a) Services worth of $47,000 provided on account which increases the accounts receivable which is a part of assets and increases service revenue which is a part of equity.
Assets = Increases ($47,000)
Stockholder's Equity = ($47,000)
(b) Received cash from the customers for services provided on account.
This increases the cash which is a asset and reduces the accounts receivable with the same amount.
Assets = Increases ($47,000) ⇒ Cash
Assets = Decreases ($47,000) ⇒ Accounts receivable
(c) Purchasing a bike by signing a note would increases the notes payable which is a liability and increases the Equipment which is a asset.
Assets = Increases ($32,000) ⇒ Equipment
Liabilities = Increases ($32,000) ⇒ Notes payable
(d) This will reduce the cash which is an asset and increases the utility expense which lead to reduce the equity.
Assets = Decreases ($4,700) ⇒cash
Stockholder's Equity = ($4,700) ⇒ Utility expense
