For each of the following activities, indicate what the company owns (the account and effect) and what the company owes (the account and effect) using the fundamental accounting equation. Be sure to answer from the standpoint of the business. An example is provided.

The Role of Accounting in Starting a Business

1. Purchased a building for $40,000; paid $30,000 cash and signed a note payable for the rest.

2. Purchased $1,000 of supplies on account.

3. Provided $31,000 of consulting service to customers on account.

4. Paid employees $19,000 cash.

5. Received a $600 utility bill to be paid next month.

6. Provided $6,200 of consulting service to customers for cash.

7. Purchased a new copy machine for $3,000 cash.

8. Paid $5,000 cash as a withdrawal by owner.

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Assets Liabilities + Owner's Equity Example: Received $100,000 contribution fro owner, Carl Reyes. Cash +100,000 C. Reyes, Capital +100,000