Record the business transactions making certain to verify the balance in the acc

Question

Record the business transactions making certain to verify the balance in the accounting equation as a result of each business transaction.

ACCOUNT HEADINGS:
Assets - Cash, Accounts Receivable, Office Supplies, Law Library
Liabilities - Accounts Payable
Capital - Carolyn Goldstein, Capital; Carolyn Goldstein, Drawing; Income from Services; Rent Expense; Utilities Expense

1. Invested $3,000 cash in the business.
2. Purchased a law library for $1,200 cash.
3. Received $500 for services rendered.
4. Purchased office supplies on credit for $150.
5. Paid rent for the month amounting to $300.
6. Sent a bill $1,100 for services rendered.
7. Sent a check for $50 in part payment of accounts payable.
8. Received $200 from customer as a result of services previously rendered and recognized.
9. Sent a check for $60 to the local utility company for costs incurred in beginning service.
10. Borrowed $200 from the business (show the effect in the Carolyn Goldstein drawing account).

The solution in the book does not match the transactions listed in the chapter. I can not check my work when I don't know what I'm doing! (I'm very new to the accounting realm.)

Thanks!

Explanation / Answer

Assets = Liabilities + Equity Stock 1 Cash + 3,000 = Equity+ 3,000 2 Law Library + 1200 Cash          - 1200 3 Cash +500 = Retained Earnings +500 (Services Rendered) 4 Office Supplies +500 = For office Supplies +500 5 Cash     - 300 Retained Earnings - 300( Rent) 6 Accounts Receivable + 1,100 = Retained Earnings + 1,100 (Services Rendered) 7 Cash - 50 = Accounts Payable - 50 8 Cash + 200 Accounts Receivable - 200 9 Cash - 60 = Retained Earnings - 60 10 Cash - 200 Drawings -200 Total Assets + 4490 = Total Liabilities + 450 + Equity + 4040

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