After graduating from college, Abe Shultz decided to start a pet grooming service called Kits & Pups Grooming.

Use a form similar to the one that follows. For each of the following transactions: 

1. Identify the accounts affected, using the account names on the form.

2. Determine the amount of the increase or decrease for each account.

3. Write the amount of the increase (+) or decrease (-) in the space under each account affected.

4. On the following line, write the new balance for each account.

5. Transaction 1 is completed as an example.

Transcribed Image Text:

Assets Liabilities + Owner's Equity Cash in Accts. Office Grooming Accounts + Abe Shultz, Capital Bank Rec. Equip. Equip. Payable 1 + $10,000 +$10,000 Date Transactions Jan. 2 1. Abe Shultz began the business by depositing $10,000 in a checking account at the Shoreline National Bank in the name of the business, Kits & Pups Grooming. 2. Bought grooming equipment for cash, $1,000. 3. Issued a check for $900 for the monthly rent. 8 9 4. Bought $6,000 worth of new office equipment on account for use in the business. 15 5. Received $700 cash for services performed for customers during the first week of business. 21 6. Issued a $2,000 check to the creditor as partial payment for the office equipment purchased on account. 29 7. Performed grooming services and agreed to be paid for them later, $500. Trans. 389