Question

Sweet Acacia Doirin is the proprietor of Doirin Accounting Services.

1.		Invoiced a client $418 for preparation of a budget.
2.		Supplies purchased on account for $172.
3.		Paid $344 for employee salaries.
4.		Received $246 from customer referred to in #1.
5.		Paid for the supplies from #2 above.
6.		The owner withdrew $2,150 cash for personal use.
7.		Received the utility bill for last month $172.
8.		The owner invested $1,720 cash into the business.

For each of the following transactions, indicate the effects on the business' assets, liabilities, and owner’s equity. (If a transaction causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Transactions		Assets		Liabilities		Capital		Drawings		Revenue		Expenses
1.		$		$		$		$		$		$
2.
3.
4.
5.
6.
7.
8.

Answer 1

Transaction	Assets	Liabilities	Capital	Drawings	Revenues	Expenses
1.	$ 418	0	$ 418	0	$ 418	0
2.	172	172	0	0	0	0
3.	- 344	0	- 344	0	0	344
4.	0	0	0	0	0	0
5.	- 172	- 171	0	0	0	0
6.	-2,150	0	- 2,150	2,150	0	0
7.	0	172	- 172	0	0	172
8.	1,720	0	1,720	0	0	0