Record transactions and adjustments Enter the following column headings across the top of a sheet of paper:

Transaction/ Owners’ Net Situation Assets Liabilities Equity Income Enter the transaction/situation number in the first column and show the effect, if any, of the transaction entry or adjustment on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners’ equity. In some cases, only one column may be affected because all of the specific accounts affected by the transac¬ tion are included in that category. Transaction a has been completed as an illustration.
(Note: As an alternative to using the horizontal model, you may write thejournal entry for each transaction or adjustment.)

a. During the month. Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment for supplies used.

b. Independent of transaction

a, assume that during the month. Supplies (asset) was debited $2,600 for supplies purchased. The total cost of supplies used during the month was $1,900. Record the adjustment for supplies used.

c. Received $1,700 of cash from clients for services provided during the current month.

d. Paid $950 of accounts payable.

e. Received $750 of cash from clients for revenues accrued at the end of the prior month.

f. Received $400 of interest income accrued at the end of the prior month.
g. Received $825 of interest income for the current month.
h. Accrued $370 of interest income earned in the current month.
i. Paid $2,100 of interest expense for the current month.
j. Accrued $740 of interest expense at the end of the current month.
k. Accrued $1,600 of commissions payable to sales staff for the current month.
Transaction/
Owners’
Net Situation Assets Liabilities Equity Income a.
+700 +700