Question

Swifty Petronick decided to start an accounting practice after graduation from university. The following is a list of events that occurred concerning Swifty's practice.

1.		After shopping around, Swifty found an office to lease and signed a lease agreement. The lease calls for a payment of $816 rent per month.
2.		Swifty borrowed $3,264 from his grandmother so that he could buy some office furniture for his new office.
3.		Swifty deposited the $3,264 plus $408 of his own cash in a new bank account at BMO under the name Petronick Accounting Services.
4.		Paid the landlord the first month's rent.
5.		Purchased office furniture for $2,693 on account.
6.		Moved into the office and obtained the first assignment from a client to prepare year-end financial statements for $1,632.
7.		Performed the work on the assignment and sent an invoice to the customer for $1,632.
8.		Paid half of the amount of the purchase of office furniture.
9.		Purchased office supplies on account for $245.
10.		Paid $41 cash for Internet services.
11.		Collected half of the amount owing from the customer referred to in #7.
12.		Swifty withdrew cash from the business of $122 for personal expenses.

Using the above table, indicate the effects of each of these events on the accounting equation. If an event is not a business transaction, or if an element is not affected, enter No Effect. If an element has both an increase and a decrease, select Increase and Decrease.

Event		Asset		Liability		Owner's Equity
1.		DecreaseIncreaseIncrease and DecreaseNo Effect		No EffectIncrease and DecreaseIncreaseDecrease		No EffectIncrease and DecreaseIncreaseDecrease
2.		No EffectIncreaseIncrease and DecreaseDecrease		DecreaseIncrease and DecreaseNo EffectIncrease		IncreaseNo EffectDecreaseIncrease and Decrease
3.		No EffectDecreaseIncrease and DecreaseIncrease		No EffectIncrease and DecreaseDecreaseIncrease		No EffectIncrease and DecreaseIncreaseDecrease
4.		No EffectIncreaseIncrease and DecreaseDecrease		IncreaseNo EffectDecreaseIncrease and Decrease		Increase and DecreaseNo EffectDecreaseIncrease
5.		IncreaseIncrease and DecreaseNo EffectDecrease		IncreaseDecreaseNo EffectIncrease and Decrease		No EffectIncrease and DecreaseDecreaseIncrease
6.		DecreaseIncreaseNo EffectIncrease and Decrease		IncreaseIncrease and DecreaseNo EffectDecrease		No EffectIncreaseIncrease and DecreaseDecrease
7.		Increase and DecreaseDecreaseNo EffectIncrease		No EffectDecreaseIncrease and DecreaseIncrease		IncreaseIncrease and DecreaseNo EffectDecrease
8.		IncreaseNo EffectDecreaseIncrease and Decrease		IncreaseDecreaseIncrease and DecreaseNo Effect		Increase and DecreaseDecreaseNo EffectIncrease
9.		IncreaseDecreaseIncrease and DecreaseNo Effect		Increase and DecreaseDecreaseNo EffectIncrease		DecreaseIncrease and DecreaseNo EffectIncrease
10.		DecreaseNo EffectIncreaseIncrease and Decrease		No EffectIncrease and DecreaseDecreaseIncrease		IncreaseNo EffectIncrease and DecreaseDecrease
11.		DecreaseIncrease and DecreaseIncreaseNo Effect		DecreaseIncrease and DecreaseIncreaseNo Effect		No EffectIncrease and DecreaseIncreaseDecrease
12.		DecreaseIncreaseNo EffectIncrease and Decrease		Increase and DecreaseDecreaseNo EffectIncrease		No EffectIncrease and DecreaseDecreaseIncrease

Answer 1

Answer: Event N w Asset No Effect Increase Increase Decrease Increase No Effect Increase Decrease Increase Decrease Increase and Decrease Decrease Liability No Effect Increase No Effect No Effect Increase No Effect No Effect Decrease Increase No Effect Owner's Equity No Effect No Effect Increase Decrease No Effect No Effect Increase No Effect No Effect Decrease No Effect No Effect No Effect Decrease