On September 1, Antonio Alvarez opened Alvarez Tutoring Service.

INSTRUCTIONS

Analyze the following transactions. Use the fundamental accounting equation form to record the changes in property, claims of creditors, and owner’s equity. (Use plus, minus, and equals signs.)

TRANSACTIONS

Analyze: 

Which transactions increased the company’s debt? By what amount?

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The owner invested $36,000 in cash to begin the business. Purchased equipment for $16,000 in cash. Purchased $6,000 of additional equipment on credit. Paid $3,000 in cash to creditors. The owner made an additional investment of $6,000 in cash. Performed services for $4,200 in cash. Performed services for $3,675 on account. Paid $2,600 for rent expense. Received $2,500 in cash from credit clients. Paid $3,150 in cash for office supplies. The owner withdrew $5,000 in cash for personal expenses.