Question

Question 2 of 5 > View Policies Current Attempt in Progress Sweet Acacia Doirin is the proprietor of Doirin Accounting Services 1. 2. 3. 4. 5. Invoiced a client $628 for preparation of a budget. Supplies purchased on account for $256. Paid $512 for employee salaries. Received $372 from customer referred to in #1. Paid for the supplies from #2 above. The owner withdrew $3,200 cash for personal use. Received the utility bill for last month $256. The owner invested $2,560 cash into the business. 6. 7. B. For each of the following transactions, indicate the effects on the business' assets, liabilities, and on causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of t particular Asset, Liability or Equity item that was reduced.)

Answer 1

	Transactions		Assets		Liabilities.		Capital		Drawings
1	Invoiced a client $628 for preparation of budget	$	628	$		$		$
2	Supplies purchased on account for $ 256	$	256	$	256
3	Paid $ 512 for employees salaries	$	-516
4	Received $ 372 from customer referred to in #1	$	nil		nil
5	Paid for the supplies from #2 above	$	nil		nil
6	The owner withdraw $3200 cash for personal use	$	-3200					$	-3200
7	Received the utility bill for last month $256	$		$	256
8	The owner invested $2560 cash in to the business	$	2560			$	2560
	Notes - Reason for classification
1	Invoiced a client $628 for preparation of budget
	Invoivr is raised on client for service - effect is Accounts receivable (asset) will increase and Revenue of $628 credit will to to the Income statement
2	Supplies purchased on account for $ 256
	When supplies purchased on account the Inventory (asset ) will be increased and a liability will be created as Accounts payable to the amount of $256
3	Paid $ 512 for employees salaries
	On paying salaries cash or Bank balance will be reduced (asset) and an expenses in Income statemet will be debited
4	Received $ 372 from customer referred to in #1
	When amount received from an on account customer - Accounts receivable will be reduced and cash will be increased to that extent hence no changes in assets
5	Paid for the supplies from #2 above
	When amount paid to an on account supplier - Accounts Payable will be reduced and to that extent cash also will be reducted hence no changes in liabilitie
6	The owner withdraw $3200 cash for personal use
	When the owner withraw money from business the The cash (asset) will be reduced and owners capital also will be reduced to that extent (liability)
7	Received the utility bill for last month $256
	When the utility bill accounted Expenses on account of utility increased ( expenseses in income statement) and a liability will be created as Accounts payable (liablity)
8	The owner invested $2560 cash in to the business
	When owner invest cash in business the captital (laiablity) will be increased and Asset - cash will be increased to that extent