A number of transactions of Claypool Construction are described below in terms of accounts debited and credited:

Debit Wages Expense; credit Wages Payable.

Debit Accounts Receivable; credit Construction Revenue.

Debit Dividends; credit Cash.

Debit Office Supplies; credit Accounts Payable.

Debit Repairs Expense; credit Cash.

Debit Cash; credit Accounts Receivable.

Debit Tools and Equipment; credit Cash and Notes Payable.

Debit Accounts Payable; credit Cash.

a. Indicate the effects of each transaction upon the elements of the income statement and the balance sheet. Use the code letters I for increase, D for decrease, and NE for no effect. Organize your answer in tabular form using the column headings shown below. The answer for transaction 1 is provided as an example.

b. Write a one-sentence description of each transaction.

Transcribed Image Text:

Income Statement Balance Sheet Transaction Revue Expenses Net Income Assets Liabilities +Owners' Equity NE NE