Selected transactions for Green Valley Lawn Care Company are listed below.
1. Made cash investment to start a business.
2. Paid monthly rent.
3. Purchased equipment on account.
4. Billed customers for services performed.
5. Withdrew cash for owner’s personal use.
6. Received cash from customers billed in (4).
7. Incurred advertising expense on the account.
8. Purchased additional equipment for cash.
9. Received cash from customers when service was performed.
Instructions: List the numbers of the above transactions and describe the effect of each transaction on assets, liabilities, and owner’s equity. For example, the first answer is (1) Increase in assets and increase in owner’s equity.