Instructions: Indicate in the True/False column, whether the journal entry is correct (True) or not correct (False). For the journal entries that are not correct (False),rewrite the correct journal entry.In addition, for each entry (using the correct journal entry), indicate the affect on each category of the accounting equation by selecting from the following: I=Increase D=decrease NC=No change

1. Performed $100 of services for a customer on account

Accounts Receivable 100

Sales Revenue 100

2. Declared and paid a cash dividend of $200

Dividends 200

cash 200

3. Paid $500 to acquire inventory (perpetual inventory system)

Inventory 500

cash 500

4. Recorded depreciation of $75 for equipment

Depreciation Expense 75

Accumulated Depreciation 75

5. Record a sale for $60 from a customer paying cash

cash 60

sales revenue 60

6. The company recieved $3,000 from a client for legal services that the company will provide over the next three months. Record the adjusting entry at the end of first month

Unearned Revenue 1000

Sales Revenue 1000