The following transactions took place at Willis Counseling Services, a business established by Raymond Willis.

INSTRUCTIONS

For each transaction, set up T accounts from this list: Cash; Office Furniture; Office Equipment; Automobile; Accounts Payable; Raymond Willis, Capital; and Raymond Willis, Drawing. Analyze each transaction. Record the amounts in the T accounts affected by that transaction.

TRANSACTIONS

1. Raymond Willis invested $50,000 cash in the business.

2. Purchased office furniture for $17,000 in cash.

3. Bought a fax machine for $675; payment is due in 30 days.

4. Purchased a used car for the firm for $17,800 in cash.

5. Willis invested an additional $15,500 cash in the business.

6. Bought a new computer for $1,250; payment is due in 60 days.

7. Paid $675 to settle the amount owed on the fax machine.

8. Willis withdrew $5,200 in cash for personal expenses.

Analyze: 

Which transactions affected asset accounts?