S. Davis, a graphic artist, opened a studio for her professional practice on August 1. The account headings are presented below. Transactions completed during the month follow.

a. Davis deposited $20,000 in a bank account in the name of the business.
b. Bought office equipment on account from Starkey Equipment Company, $4,120.
c. Davis invested her personal photographic equipment, $5,370, in the business.
d. Paid the rent for the month, $1,500, Ck. No. 1000.
e. Bought supplies for cash, $215, Ck. No. 1001.
f. Bought insurance for two years, $1,840, Ck. No. 1002.
g. Sold graphic services for cash, $3,616.
h. Paid the salary of the part-time assistant, $982, Ck. No. 1003.
i. Received and paid the bill for telephone service, $134, Ck. No. 1004.
j. Paid cash for minor repairs to graphics equipment, $185, Ck. No. 1005.
k. Sold graphic services for cash, $3,693.
l. Paid on account to Starkey Equipment Company, $650, Ck. No. 1006.
m. Davis withdrew cash for personal use, $1,800, Ck. No. 1007.
Required
1. Record the transactions and the balance after each transaction.
2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.

Transcribed Image Text:

Assets Liabilities + Owner's Equity Prepald Office Photo Accounts Cash + Supplies + Insurance + Equipment + Equipment = Payable + Capital-Drawing + Revenue-Expenses