Question

Following are the transactions of Green Company.

May	1		The company provided $2,600 of sustainability consulting services on credit to a customer.
	3		The company purchased $600 of energy-efficient supplies on credit.
	9		The company collected $1,100 cash as partial payment of the May 1 consulting revenue.
	20		The company paid $600 cash toward the payable for energy-efficient supplies.
	31		The company paid $400 cash for May’s renewable energy utilities.

Analyze each transaction of the Green Energy Company by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction. Use the following partial chart of accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Consulting Revenue; and Utilities Expense.

Answer 1