J.A. Motzek Inc. has the following transactions during August of the current year.

Indicate

(a) the effect on the accounting equation and

(b) the debit-credit analysis illustrated on pages 66-71 of the text.

Aug. 1 Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.

4 Pays insurance in advance for 6 months, $1,800 cash.

16 Receives $1,100 from clients for services provided.

27 Pays secretary $1,000 salary.

Journalize transactions.

(LO 4)