BUS 212 ACCOUNTING PRINCIPLES Remote Assignment #3

After each transaction list which accounts are effected, and if they increase or decrease. For example, Cash (+ or - ) and the dollar amount which it increases or decreases. Remember each will effect at least 2 different accounts. Then list the effects on Assets, Liabilities, and Owners Equity.Then you will need to do T accounts to answer A,B & C

Babalu Montego decides to open a pool cleaning service. During the month of July he completes the following transactions.

1) He puts $7000 of his own money in the bank account of the business.

2) He purchases pool cleaning equipment for $900.

3) He buys $600 worth of chemicals for swimming pools.

4) He buys a used Van for the business and puts $3000 down and owes $9000 more.

5) Babalu cleans several pools and gets paid $700 for the work he does during the month of July.

6) He uses up $200 worth of chemicals while doing the work in July.

7) At the end of the month he makes a $300 payment on the van.

8) Finally he pays himself $100 in cash.

A- What are the totals in his Asset, Liabilities, Withdrawals, Expenses, Revenues, and Capital accounts?

B- What does his Revenue ___________ minus his Expenses _____________ = _______________

C- Did he make a profit? Yes or No