ACCT110

Question 2:

In a double entry accounting system, each transaction affects at least two different accounts. For the following transactions identify the two accounts and what type of account is each, asset, liability, equity, revenue, or expense.

On July 1, Salvatore, the owner invested $10,500 cash into the company.

Name of Accounts Affected:	Type of Account:

On July 2, the company paid $2,000 cash for an insurance policy covering the next 12 months.

Name of Accounts Affected:	Type of Account:

On July 5, the company purchased Office Supplies for $500 for cash.

Name of Accounts Affected:	Type of Account:

On July 7, the company completed services for $10,000 with a $1,000 payment and the rest on account.

Name of Accounts Affected:	Type of Account:

On July 10, the company paid $100 for the telephone bill.

Name of Accounts Affected:	Type of Account:

On July 15, the company received $4,000 for services to be performed at a later date.

Name of Accounts Affected:	Type of Account:

On July 22, the owner withdrew $50 cash.

Name of Accounts Affected:	Type of Account:

On July 25, the company received partial payment from July 7^th of $500.

Name of Accounts Affected:	Type of Account:

On July 25, the company bought $4,000 worth of equipment on account.

Name of Accounts Affected:	Type of Account:

On July 31, the company paid $4,000 for the equipment purchased on the 25^th.

Name of Accounts Affected:	Type of Account: