Assume that Atwell Laboratories, Inc., operates with an accounting fiscal year ending June 30. Its trial balance as of May 31 is as follows.

ATWELL LABORATORIES, INC.
Trial Balance
May 31
	Debit	Credit
Cash	$500
Accounts receivable	8,000
Prepaid insurance	6,000
Supplies	30,200
Equipment	270,000
Accumulated depreciation—equipment*		$60,000
Accounts payable		4,000
Contract liability		4,000
Fees revenue		142,300
Wages expense	54,000
Rent expense	22,000
Common stock		120,400
Retained earnings		60,000
Totals	$390,700	$390,700

*Accumulated depreciation, a contra asset account, will be discussed in the next section.

The following five transactions took place in June by the company.
1. Paid $4,000 in cash for wages for June.
2. Received $6,500 in cash for services provided in June.
3. Purchased $1,100 supplies on account.
4. Performed $1,200 of services on account in June.
5. Paid suppliers $2,000 on account.

Required

Show the impact of the transactions listed above using the FSET.

Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.

	Balance Sheet									Income Statement
	Cash		Noncash				Contrib.		Earned					Net
Transaction	Asset	+	Assets	=	Liabilities	+	Capital	+	Capital	Revenues	-	Expenses	=	Income
(1) Paid for wages	Answer		Answer		Answer		Answer		Answer	Answer		Answer		Answer
	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	-	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=
(2) Receipt for services	Answer		Answer		Answer		Answer		Answer	Answer		Answer		Answer
provided.	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	-	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=
(3) Purchase of supplies	Answer		Answer		Answer		Answer		Answer	Answer		Answer		Answer
on account.	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	-	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=
(4) Performed services	Answer		Answer		Answer		Answer		Answer	Answer		Answer		Answer
on account.	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	-	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A	=
(5) Paid suppliers on	Answer		Answer		Answer		Answer		Answer	Answer		Answer		Answer
account	AnswerAccounts payableAccounts receivableAccumulated depreciation—equipment*CashCommon stockContract liabilityEquipmentFees revenuePrepaid insuranceRent expenseRetained earningsSuppliesWages expenseN/A		Answer

Answer rating: 100% (QA)

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