1. 2 3. 4. 5. Received $49,000 cash as investment from Clay Gordon, the company's owner. Purchased equipment for $48,000, paying $23,500 in cash and giving a note payable for the remainder. Paid $11,500 for a one-year insurance policy. Billed customers for $31,000 of services provided on account. Paid monthly rent of $10,000. Performed $15,000 of services and immediately received $15,000 cash. Collected $10,500 from customers on account Hired a secretary Paid the secretary his first week's salary of $2,400. 6. 7. 8. 9. No. Account Titles and Explanation Debit Credit 1. Cash 49,000 C. Gordon, Capital 49,000 2 Equipment 48,000 3. 3. 3. 7. 8