Question

Patricia Johnson started her own consulting firm, Crane Consulting, on May 1, 2020. The following transactions occurred during the month of May. May 1 2 3 5 9 12 15 Trixie invested $6,100 cash in the business. Paid $800 for office rent for the month. Purchased $600 of supplies on account. Paid $170 to advertise in the County News. Received $3,800 cash for services performed. Withdrew $1,000 cash for personal use. Performed $5,800 of services on account. Paid $2,800 for employee salaries. Made a partial payment of $400 for the supplies purchased on account on May 3. Received a cash payment of $3,600 for services performed on account on May 15. Borrowed $4,700 from the bank on a note payable. Purchased equipment for $4,100 on account. Paid $350 for utilities. 17 20 23 26 29 30

Answer 1

Assets	Liabilities	Owner's Equity
Date	Cash     +	Account Receivable    +	Supplies	Equipment      =	Note Payable	Accounts Payable	+ Owner Capital	-    Owner Drawing	+     Revenue	- Expenses
1	6100						6100
2	-800									-800	In this case expense is increasing and owner's equity is decreasing
3			600			600
5	-170									-170	In this case expense is increasing and owner's equity is decreasing
9	3800								3800
12	-1000							-1000			In this case 0wner drawing is increasing and owner's equity is decreasing
15		5800							5800
17	-2800									-2800	In this case expense is increasing and owner's equity is decreasing
20	-400					-400
23	3600	-3600
26	4700				4700
29				4100		4100
30	-350									-350	In this case Expense is increasing and Owner's Equity is decreasing