The transactions during October for Pacific Plumbing Company included the follow¬ ing: LO8

(1) On October 1, paid $640 cash for the month’s rent.

(2) On October 3, made repairs for First National Bank and collected in full the charge of $1,014.

(3) On October 8, performed repair work for American Home Builders. Sent bill tor

$1,332 for services rendered.

(4) On October 15, placed an advertisement in the Tribune at a cost of $310 payment to be made within 30 days.

(5) On October 21, purchased equipment for $4,000 cash.

(6) On October 30, received a check for $1,332 from American Home Builders.

(7) On October 31, sent check to the Tribune in payment of liability incurred on October 15.

(8) On October 31, the owner, Lee Toguchi withdrew $1,600 cash for personal use.

Instructions a Write an analysis of each transaction. An example of the type of analysis desired is as follows:

(1)

(a) Rent is an operating expense. Expenses are recorded by debits. Debit Rent Expense, $640.

(b) The asset Cash was decreased. Decreases in assets are recorded by credits.

Credit cash, $640.

b Prepare a journal entry (including explanation) for each of the above transac¬ tions.