Liam's Computer Servicing, Inc., a service company that provides installation services for computer programs, had a service revenue transaction in the amount of \$150,000 on May 31, 2022, with one customer. This customer chose to put the balance owed on its credit account with Liam's, and paid off the balance owed of \$150,000 in full on June 23, 2022. What is the effect of this transaction on the accounting equation? What is the journal entry for this transaction? Omit explanation.
What is the effect of the June 23 transaction on the accounting equation? (If an input field is not used in the table leave the input field empty, do not enter a zero. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: Acc. OCI = Accumulated Other Comprehensive Income; Beg. R/E = Beginning Retained Earnings; Contr. Cap. = Contributed Capital.)
Assets = Liabilities + Stockholders' Equity
Ending Retained Earnings
Cash + Accounts Receivable = Liabilities + Contr. Cap. + Acc. OCI + Beg. R/E + Revenues and Gains - Expenses and Losses - Dividends Declared
150000 + (150000) = + 150000 - -
What is the journal entry for this transaction? (Record debits first, then credits. Exclude explanations from any journal entries. Check your spelling carefully and do not abbreviate.)
Account June 23, 2022
Cash 150000
150000
150000
