Here are some account changes that have occurred to Lotus Ltd. For each of the items, write in a few words what would have caused the changes and write a journal entry to account for them.
1 Cash up $10 000; service revenue up $10 000.
2 Wages expense up $8000; cash down $10000; wages payable down $2000.
3 Accounts payable down $3220, cash down $3220.
4 Income tax expense up $5900, cash down $5000, income tax payable up $900.
5 Cash up $350, customer deposits liability up $350.
6 Auditing expense up $3000, accounts payable up $2400, cash down $600.
7 Equipment up $5200, share capital up $5200.
8 Cash up $2400, accounts receivable up $6600, revenue up $9000, inventory down $5500, COGS expense up $5500.