H. Xiao has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated on pages 66–70 of the text.

1

Opens an office as a financial advisor, investing $8,000 in cash.

4

Pays insurance in advance for 6 months, $1,800 cash.

16

Receives $3,400 from clients for services performed.

27

Pays secretary $1,000 salary.