1. Show the accounts involved in the transactions below under the five main headings of the financial statements (i.e.

assets (A), liabilities (L), equity/capital (C), revenue (R), and expenses (E)):

2. Advise what accounts would be debited and credited.

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Modern Decorating Services Ltd May 1 Brian Smith started a business by investing 3 4 4 $10,000 in cash. Purchased premises for $14,000 payable in 10 equal annual instalments. Paid the first instalment from 3 May. Purchased $1,500 of decorating supplies on credit. 5 Paid wages, $2,000. in 8 Received $8,000 for services sold. 8. Invested a further $3,000 in the business. 10 Bought a van for $2,000 cash. 11 Sold services on credit for $4,000. 12 Paid for the supplies from 4 May. 15 Paid registration on van, $300. 16 Received $3,000 from clients from 11 May service. 16 Withdrew $1,000 for own use.