The accounting equation of Matthew Thomas, attorney, at the beginning of an accounting period is given below, followed by seven transactions whose effects on the accounting equation are shown. Describe each transaction that occurred. Of the transactions affecting retained earnings, transaction (e) had no effect on net income for the period.

Transcribed Image Text:

Accounts Accounts Notes Common Retained Cash Receivable + Supplies = Payable + Payable + Stock + Earnings $4,100 + $9,000 + $900 = $1,000 +$2,500 + $7,500 + $3,000 Balance (a) +7,500 -7,500 (b) +8,000 -800 (e) -4,900 (f) -300 (g) +3,200 +400 +400 -800 +300 +8,000 -4,900 +3,200