Analysis of transactions.
Set up the following headings across a piece of paper:
Assets = Liabilities + Owner’s Equity
By using “+” and “-,” indicate the effect of each of the following transactions on total assets, liabilities, and owner’s equity:
a. Processed a $5,000 cash withdrawal for the owner.
b. Recorded the receipt of May’s utility bill, to be paid in June.
c. Provided services to customers on account.
d. Paid the current month’s advertising charges.
e. Purchased a $27,000 delivery truck by paying $5,000 down and securing a loan for the remaining balance.
f. Received $11,000 cash from the owner as an investment in the business.
g. Returned a new computer and printer purchased earlier in the month on account. The bill had not as yet been paid.
h. Paid the utility bill recorded previously in (b).