Cash Equipment Luis Chavez, Drawing (1) 75,000 (2) 4,000 (3) 25,000 (9) 5,000 (7) 11,000 (3) 3,000 (4) 2,700 (6) 9,000 (9) 5,000
Accounts Receivable Accounts Payable Service Revenue (5) 19,500 (7) 11,000 (6) 9,000 (3) 22,000 (5) 19,500
Supplies Luis Chavez, Capital Operating Expenses (2) 4,000 (8) 2,000 (1) 75,000 (4) 2,700 (8) 2,000
Indicate for each debit and each credit: (a) whether an asset, liability, owner’s equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (–). Present your answers in the following form, with transaction (1) given as an example:
Account Debited Account Credited Transaction Type Effect Type Effect (1) asset + owner’s equity +
Answer:
a. and b.
Account Debited Account Credited
Transaction
Type
Effect Type Effect
(1) (2) (3)
(4) (5) (6) (7) (8) (9)
asset + owner’s equity + asset + asset – asset + asset – liability + expense + asset – asset + revenue + liability – asset – asset + asset – expense + asset – drawing + asset –