Rosy Cheeks Company distributes perfumes and cosmetics. The following account changes were made in the company’s accounting records during March. For each item, describe the transaction that caused the changes. The first item has been completed as an example.
a. Cash increased $18,000; Contributed Capital increased $18,000. The owners invested $18,000 in the company.
b. Equipment increased $10,500; Cash decreased $10,500.
c. Cash increased $8,500; Notes Payable increased $8,500.
d. Supplies inventory increased $13,500; Cash decreased $13,500.
e. Merchandise Inventory decreased $9,500; Cost of Goods Sold increased $9,500.
f. Cash increased $23,500; Sales Revenue increased $23,500.
g. Supplies Expense increased $2,250; Supplies inventory decreased $2,250.