1-M Mastery Problem: Determining how transactions change an accounting equation L04, 5, 6 Peter Gentry operates a service business called Doggywood Pet Suites. Doggywood Pet Suites uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem. + Owner's Equity Trans Liabilities Acets. Pay- Paws & Claws Co. Acets. Rec.- Prepaid + Dr. Shephard + Supplies + Insurance = 100 Peter Gentry. Capital Cash + Beg Bal 2.500 200 1,300 -500 expense New Bal 2,000 200 100 1.300 1,000 Instructions: For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns, using a plus sign (+) if the account increases or a minus sign (-)! the account decreases. c For transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount d. Calculate the new balance for each account in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, $500.00. 2. Received cash from owner as an investment, $700.00. 3. Paid cash for telephone bill, $75.00. 4. Received cash from sales, $1,050.00. 5. Bought supplies on account from Paws & Claws Co., $275.00. 6. Sold services on account to Dr.Shephard, $285.00. 7. Paid cash for advertising, $450.00. 8. Paid cash for supplies, $185.00. Starting a Proprietorship: Changes That Affect the Accounting Equation 9. Received cash on account from Dr. Shephard, $150.00. 10. Paid cash on account to Paws & Claws Co., $200.00. 11. Paid cash for one month of insurance, $100.00. 12. Received cash from sales, $475.00. 13. Owner withdrew equity in the form of cash, $800.00. 1-C Challenge Problem: Determining how transactions equation L04,5,6 Linda Liu owns a tutoring service called Homework Helper. On October 30, Ho indicated the following account balances. Use the form in your Working Papers Trans. No. Assets Accts. Rec. - 4Kids Cash 7,542 + Beg. Bal. Daycare Acct Prepaid + Supplies + Insurance = 1,100 1,265 Ash Se Instructions: 600 1. For each transaction, complete the following: a. Analyze the transaction to determine whil b. Write the amount in the arcou