Question

you please check my answers? there are also some questions i left blank because i really have no idea what to do with them. thank you so much! :)

Transaction Effects on the Basic Accounting Model The following are some transactions of Maricel Supan Services : Received cash as additional investment . Purchased supplies on account . Charged customers for services made on NAME: SECTION: OE Problem #4 > +(21-4441 a. b. c. account. Rendered services to cash customers. Paid cash for rent on building. Collected on account receivable in full. d. e. Paid cash for supplies. Returned supplies purchased on account. Paid cash to settle accounts. Paid cash to owner for personal use. 0 h. j. Required: For each transaction, indicate whether the assets (A), liabilities (L) or owner's (OE) increased (+), decreased (-) or did not change (0) by placing the appropriate the appropriate column.

Answer 1

Assets - An asset is increased when a Debit transaction is made and decreased when a credit transaction is made with respect to business.

Liabilities - A liability is increased when a Credit transaction is made and decreased when a Debit transaction is made with respect to business.

Owner's Equity - It increases with a Credit transaction and decreases with a Debit transaction, made by the Owner itself.

Accordingly,

PARTICULARS	ASSET	LIABILITY	OWNER'S EQUITY
a. Received cash as additional investment (this will increase the balance of Cash and Owner's Equity)	+	0	+
b. Purchased supplies on account (this will increase Supplies Stock and Account Payable balance)	+	+	0
c. Charged customers for services made on account (this will increase Account Recievable balance and Owner's Equity with profit)	+	0	+
d. Rendered services to cash customers (this will increase the cash balance and owner's equity with profit)	+	0	+
e. Paid cash for rent on building (this will reduce the cash balance and being an expense will reduce owner's equity)	-	0	-
f. Collected on account recievable in full (this will increase balance of cash/bank and reduce account recievable balance)	+ -	0	0
g. Paid Cash for supplies (this will reduce cash and increase stock of supplies and being an expense will reduce owner's equity)	+ -	0	-
h. Returned supplies purchased on account (this will reduce Stock of supplies and accounts payable and will increase owner's equity)	-	-	+
i. Paid Cash to settle accounts. (this will reduce cash balance and account payable balance)	-	-	0
j. Paid cash to owner for personal use (this will reduce Cash balance and Owner's equity being drawings.)	-	0	-