ANALYZING TRANSACTIONS Using the accounts listed below, identify the account aff

Question

ANALYZING TRANSACTIONS

Using the accounts listed below, identify the account affected given the increase and decrease information

ACCOUNT CLASSIFICATIONS AND OFFICIAL ACCOUNT NAMES

ASSETS: Cash, Account recievable, supplies, prepaid rent, computer equipment, office equipment

LIABILITIES: Account payable

OWNER'S EQUITY: J. Jones Capital, J. Jones Drawing

REVENUE: Fees Income

EXPENSES: Utlities expense, Rent expense, Salaries expense

1. Starting the business: The owner invests thier personal cash savings into the business

ACCOUNT INCREASED:

ACCOUNT INCREASED:

2. Issue a check to purchase supplies

ACCOUNT INCREASED:

ACCOUNT DECREASED:

3. Purchase computer equipment on account (also considered on credit) due in 30 days

ACCOUNT INCREASED:

ACCOUNT INCREASED:

4. Issue a check to purchase office eqiupment

ACCOUNT INCREASED:

ACCOUNT DECREASED:

5. Issue a check to prepay future months rent

ACCOUNT INCREASED:

ACCOUNT DECREASED:

Explanation / Answer

1 ACCOUNT INCREASED: Cash ACCOUNT INCREASED: J. Jones Capital 2 ACCOUNT INCREASED: Supplies ACCOUNT DECREASED: Cash 3 ACCOUNT INCREASED: Computer equipment ACCOUNT INCREASED: Account payable 4 ACCOUNT INCREASED: Office equipment ACCOUNT DECREASED: Cash 5 ACCOUNT INCREASED: Prepaid rent ACCOUNT DECREASED: Cash

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