Effect of Transactions on Accounting Equation

Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.

1. Invested cash in business, $18,000.
2. Bought office supplies for $4,600: $2,000 in cash and $2,600 on account.
3. Paid one-year insurance premium, $1,200.
4. Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account.
5. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,300.
6. Paid office rent for the month, $750.
7. Withdrew cash for personal use, $100.

Required:

Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital - Drawing + Revenues - Expenses). After transaction (g), report the totals for each element. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank.

Assets =Liabilities+Owner's Equity (Items Owned) (Amts. Owed) (Owner's Investment) (Earnings) Cash+Accounts Receivable+Office Supplies+Prepaid Insurance=Accounts Payable+J. Pembroke, Capital-J. Pembroke, Drawing+Revenues-Expenses Descriptiona.fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 b.fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 c.fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27 d.fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36 Rent expenseService feesTelephone expenseWages expensee.fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 f.fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 Rent expenseService feesTelephone expenseWages expenseg.fill in the blank 57 fill in the blank 58 fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 Bal.fill in the blank 66+fill in the blank 67+fill in the blank 68+fill in the blank 69=fill in the blank 70+fill in the blank 71-fill in the blank 72+fill in the blank 73-fill in the blank 74

Demonstrate that the accounting equation has remained in balance.

Cash$fill in the blank 75Accounts receivablefill in the blank 76Office suppliesfill in the blank 77Prepaid insurancefill in the blank 78Total Assets$fill in the blank 79Accounts payable$fill in the blank 80Jay Pembroke, capitalfill in the blank 81Jay Pembroke, drawingfill in the blank 82Service feesfill in the blank 83Rent expensefill in the blank 84Total Liabilities and Owner's Equity$fill in the blank 85

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