Explaining the Effects of Transactions on Balance Sheet Accounts Using T-Accounts
Waltman Furniture Repair Service, a company with two stockholders, began operations on June 1, 2011. The following T-accounts indicate the activities for the month of June.

Required:
Explain events (a) through (d) that resulted in the entries in the T-accounts. That is, for each account, what transactions made it increase and/ordecrease?

Tools and Equipment (A) 6/1/11 Notes Receivable (A) 6/1/11 b. Cash (A) 6/1/11 10,000 1,500 16,000 1,500 4,000 d. 800 a. C. a. 800 d. b. Contributed Capital (SE) Building (A) Notes Payable (L) 6/1/11 a. 6/1/11 C. 6/1/11 C. 20,000 50,000 40,000