7. Paid cash for charitable contributions $35.00 & Received cash on account from Eden Wedding Planners, $300.00 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. Peter Gentry Acts Ree Dr Shephard + Capital Cash 2.500 Prepaid + Supplies + Insurance 100 200 1.300 Beg Bal L000 New Bal 1.300 2.000 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 signif the account decreases. 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 Chap