Question

Not sure if the first requirement of the problem is correct.

Exercise 3.2 Using T accounts to analyze transactions. LO 3-2 Derrick Wells decided to start a dental practice. The first five transactions for the business follovw 1. Derrick invested $85,000 cash in the business. 2. Paid $25,000 in cash for equipment. 3. Performed services for cash amounting to $8,500 4. Paid $3,300 in cash for advertising expense. 5. Paid $2.500 in cash for supplies () Select which two accounts are affected in each of the above transactions (2&3) Post the above transactions into the appropriate T accounts Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Select which two accounts are affected in each of the above transactions Credit Transaction 1 Cash Derrick Wells, Capital ash Transaction 3 Cash Transaction 4 Advertising expense Transaction 5 Fees income ash Cash

Answer 1

	Requirement 1 is totally correct
	T- Accounts
	cash
Derrick Wells capital	85000	equipment	25000
fees income	8500	advertising expense	3300
		cash	2500
		balance	62700
total	93500	total	93500
	Derrick wells capital
balance	87500	cash	85000
		supplies	2500
	equipment
cash	25000	balance	25000
	fees income
balance	8500	cash	8500
	advertising expense
cash	3300	balance	3300
	supplies
cash	2500	balance	2500