Curtis security services inc has some clients who pay for


Curtis Security Services, Inc. has some clients who pay for their services in advance and other clients who receive services on account. During 2005, Curtis received $628,600 in advance for services to be performed in 2006. Also in 2005, Curtis provided $1,036,500 of services to customers on account. Curtis incurred $476,800 of expenses, all on account. What effect did these particular revenue and expense transactions have on the balance sheet?

a. Increase total assets $1,188,300; increase total liabilities $476,800; increase total stockholders' equity $711,500.

b. Increase total assets $1,188,300; increase total liabilities $628,600; increase total stockholders' equity $559,700.

c. Increase total assets $1,665,100; increase total liabilities $1,105,400; increase total stockholders' equity $559,700.

d. Increase total assets $1,665,100; increase total liabilities $476,800; increase total stockholders' equity $1,188,300.

e. None of the above.

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