Brief Exercise 2-5 M. Bonzales has the following transactions during August of the current year Indicate the effect on the accounting equation and on the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $8,000 in cash 4 Pays insurance in advance for 6 months, $1,800 cash 16 Receives $3,600 from clients for services performed 27 Pays secretary $1,000 salary. Effect on Accounting Equation Debit-Credit Analysis Aug. 1 The assetCsh Increased Debits Increase Owner's Equity IS s Capital is Increased-Debit the owner's equity account Credits Increase Owner's Equity Credit Debits Debit Credits Credit Debits Debit Credits Credit Debits Debit Credits Credit Aug. 4 The asset ash is Decreased' . the asset Prepaid Insurance IS Increased Aug. 16 The asset Increased IS Revenue the revenue ?S? Increased ' Aug. 27 The expense Salaries and Wag ?S Increased the asset