Part 1

State whether the following accounts should be debited or credited :

• Increase in expenses
• Increase in capital/Owners equity
• Decrease in liabilities
• Decrease in Revenue
• Increase in assets
• Increase in liabilities
• Decrease in expenses
• Decrease in assets
• Decrease in Capital/Owners equity

Part 2

Name the 2 accounts affected by each of the following transactions and state whether it should be debited or credited

1. The owner invests cash to start up the business
2. Provided consulting services for cash
3. Paid rent by cash
4. Purchased a motor vehicle for use in the business on account from Massy Motors Ltd.
5. Purchased premises using a mortgage loan
6. Paid for repairs of an equipment by cash
7. Provided consulting services on account
8. Purchased supplies by cash
9. Paid Massy motors for the motor vehicle by cash
10. Customers who owed us for services provided paid by cash

Part 3

Marcus Lee Consulting Ltd commenced business on September 1 2018 and had the following transactions during the month

2018

September 1: Marcus deposited $100,000 of his own money into the business

September 3: He purchased supplies costing $55,950

September 4: Provided consultancy services for cash, $46, 400

September 7: Paid $20,000 for insurance

September 12: Billed customers for services provided $37,350

September 16: Paid salaries $9,850

September 20: Purchased Furniture on credit for $38,000

September: 22: Customers previously billed paid 16,000 on their account

September 24: Paid utilities $9,700

September 26: Paid part owed for furniture purchased, $20,950

September 30: Paid rent $24,000

September 30: Marcus withdrew $9,000 for his own personal use

Required:

1. Prepare the necessary journal entries with narrations to record the transactions above

2. Open General Ledger Taccounts for each, post the journal entries to their respective T accounts and balance each account

3. After balancing off the accounts, represent this information in the expanded accounting equation.