Question

uestion 4 of 6 < > rent Attempt in Progress Vaterway Petronick decided to start an accounting practice after graduation from university. The followin occurred concerning Waterway's practice. 1. . 3. 4. 5. After shopping around, Waterway found an office to lease and signed a lease agreement. The leas $976 rent per month. Waterway borrowed $3,904 from his grandmother so that he could buy some office furniture for Waterway deposited the $3,904 plus $488 of his own cash in a new bank account at BMO undert Accounting Services Paid the landlord the first month's rent. Purchased office furniture for $3,223 on account. Moved into thd office and obtained the first assignment from a client to prepare year-end financia Performed the work on the assignment and sent an invoice to the customer for $1,952. Paid half of the amount of the purchase of office furniture. Purchased office supplies on account for $295. Paid $51 cash for Internet ser ces. Collected half of the amount owing from the customer referred to in #7. Waterway withdrew cash from the business of $142 for personal expenses. 6. 7. 8. 9. 10. 11. 12.

options:

decrease

increase and decrease

no effect

increase

Answer 1

	Assets	Liability	Owner's Equity
1	No Effect	No Effect	No Effect
2	No Effect	No Effect	No Effect
3	Increase	No Effect	Increase
4	Decrease	No Effect	Decrease
5	Increase	Increase	No Effect
6	No Effect	No Effect	No Effect
7	Increase	No Effect	Increase
8	Decrease	Decrease	No Effect
9	Increase	Increase	No Effect
10	Decrease	No Effect	Decrease
11	No Effect	No Effect	No Effect
12	Decrease	No Effect	Decrease