Create a table like the one in Exhibit, using the following headings for columns: Cash; Accounts Receivable; Accounts Payable; Owner, Capital; Owner, Withdrawals; Revenues; and Expenses. Then use additions and subtractions to show the effects of each transaction on individual items of the accounting equation (identify each revenue and expense type, such as commission’s revenue or rent expense).
a. The company completed consulting work for a client and immediately collected $5,500 cash earned.
b. The company completed commission work for a client and sent a bill for $4,000 to be received within 30 days.
c. The company paid an assistant $1,400 cash as wages for the period.
d. The company collected $1,000 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $700 cash for this period’s cleaning services.