110 bookstatic a is answered as a gukde b Purchased for 5000

1-10 (book/static) (a) is answered as a gukde b. Purchased for $5.000 on account d. Earned and received $2.500 cash for service revenue

Solution

a Increase asset Cash Increase equity Common stock b Increase asset (equipment) Increase liability Accounts payable c Increase asset (office supplies) Decrease asset (Cash) d Incarease asset (Cash) Increase equity (Service revenue) e Decrease asset (Cash ) Decrease equity (wages expense) f Decrease asset (Cash ) Decrease equity (dividend ) g Increase asset (Accounts receivable) Increase equity (Service revenue) h Decrease asset (Cash ) Decrease equity (rent expense) i Increase liability (Accounts payable) Decrease equity (utilities expense)