Windsor, inc. has the following transactions during august of the current year. indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. aug. 1 opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock. 4 pays insurance in advance for 6 months, $1,850 cash. 16 receives $400 from clients for services performed. 27 pays secretary $1,760 salary.

Knowledge check 01 taylor company has current sales of 1,000 units, at a selling price of $190 per unit, variable costs per unit of $76 and fixed expenses of $96,000. the company believes sales will increase by 300 units, if the company introduces sales commissions as an incentive for the sales staff. the change will decrease the selling price to $175 per unit, increase variable cost per unit to $100 and decrease fixed expenses by $20,000. what is the net operating income after the changes? increase of $21,500 decrease of $30,000 increase of $24,500 decrease of $22,000