Reference no: EM131734943

Question: The Billerica Company engaged in the following transactions with its customers in July. July 1: provided services to customers who agreed to pay $2,400 by August 1. July 8: received $2,900 from customers serviced in May. July 20: received $2,600 from customers for services to be provided to them in August. July 27: provided additional services to customers and received $4,000.

Show the total effects on the Company's assets, liabilities, and stockholders' equity resulting from its July cash transactions.

a. Assets increase by $11,900, liabilities increase by $2,600, and stockholders' equity increases by $9,300.

b. Assets increase by $6,600, liabilities increase by $2,600, and stockholders' equity increases by $4,000.

c. Assets increase by $9,000 and stockholders' equity increases by $9,000.

d. Assets increase by $9,000, liabilities increase by $5,000, and stockholders' equity increases by $4,000.