Assume John Sullivan completed the following additional transactions during February.

(e) Received cash from a client for professional services, $1,310.

(f) Paid office rent for February, $580.

(g) Paid February phone bill, $62.

(h) Withdrew cash for personal use, $1,040.

(i) Performed services for clients on account, $990.

(j) Paid wages to part-time employee, $1,060.

(k) Received cash for services performed on account in transaction (i), $400. (Enter the change in Cash on the first line and the change in other account on the second line.)

Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital – Drawing + Revenues – Expenses). Use the minus sign to indicate a decrease or reduction in the account. After transaction (k), report the totals for each element. If an amount box does not require an entry, leave it blank.

					Owner's Equity
	Assets	=	Liabilities	+	Capital	-	Drawing	+	Revenues	-	Expenses		Description
Bal.	30370		5250		25120
(e)	fill in the blank 1		fill in the blank 2		fill in the blank 3		fill in the blank 4		fill in the blank 5		fill in the blank 6		Phone expenseRent expenseService feesWages expense
(f)	fill in the blank 8		fill in the blank 9		fill in the blank 10		fill in the blank 11		fill in the blank 12		fill in the blank 13		Phone expenseRent expenseService feesWages expense
(g)	fill in the blank 15		fill in the blank 16		fill in the blank 17		fill in the blank 18		fill in the blank 19		fill in the blank 20		Phone expenseRent expenseService feesWages expense
(h)	fill in the blank 22		fill in the blank 23		fill in the blank 24		fill in the blank 25		fill in the blank 26		fill in the blank 27
(i)	fill in the blank 28		fill in the blank 29		fill in the blank 30		fill in the blank 31		fill in the blank 32		fill in the blank 33		Phone expenseRent expenseService feesWages expense
(j)	fill in the blank 35		fill in the blank 36		fill in the blank 37		fill in the blank 38		fill in the blank 39		fill in the blank 40		Phone expense/Rent expense/Service feesWages expense
(k)	fill in the blank 42		fill in the blank 43		fill in the blank 44		fill in the blank 45		fill in the blank 46		fill in the blank 47
	fill in the blank 48		fill in the blank 49		fill in the blank 50		fill in the blank 51		fill in the blank 52		fill in the blank 53
Bal.	fill in the blank 54		fill in the blank 55		fill in the blank 56		fill in the blank 57		fill in the blank 58		fill in the blank 59

Demonstrate that the accounting equation has remained in balance.

Total Assets	$fill in the blank 60
Total Liabilities	$fill in the blank 61
Capital	fill in the blank 62
Drawing	fill in the blank 63
Revenues	fill in the blank 64
Expenses	fill in the blank 65
Total Liabilities and Owner's Equity	$fill in the blank 66

Answer rating: 100% (QA)

Effect of transaction on Accounting Equation Owners equity Liabiliti... View the full answer