A number of transactions of Rufi Construction are described below in terms of accounts debited and credited:

1. Debit Wages Expense; credit Wages Payable.

2. Debit Accounts Receivable; credit Construction Revenue.

3. Debit Dividends; credit Cash.

4. Debit Office Supplies; credit Accounts Payable.

5. Debit Repairs Expense; credit Cash.

6. Debit Cash; credit Accounts Receivable.

7. Debit Tools and Equipment; credit Cash and Notes Payable.

8. Debit Accounts Payable; credit Cash.

Required

a)Indicate the effects of each transaction upon the elements of the income statement and the balance sheet.

Use the code letters I for increase, D for decrease, and NE for no effect. Organize your answer in tabular form using the column headings shown below. The answer for transaction 1 is provided as an example.

^{Income Statement Balance Sheet}

^{Transaction Revenue - Expenses = Net Income Assets = Liabilities +Owners' Equity}

^{1 NE I D NE I D}

²

³

⁴

⁵

⁶

⁷

⁸

b)Write one-sentence description of each transaction.

1

2

3

4

5

6

7

8