Effects of Transactions (Revenue, Expense, Withdrawals)

Assume John Sullivan completed the following additional transactions during February.

(e) Received cash from a client for professional services, $1,320.

(f) Paid office rent for February, $640.

(g) Paid February phone bill, $60.

(h) Withdrew cash for personal use, $1,160.

(i) Performed services for clients on account, $910.

(j) Paid wages to part-time employee, $1,190.

(k) Received cash for services performed on account in transaction (i), $360. (Enter the change in Cash on the first line and the change in other account on the second line.)

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

Owner's Equity Assets - Liabilities + Capital - Drawing t Revenues E Expenses Description Bal 30870 4650 26220 Bal Demonstrate that the accounting equation has remained in balance Total Assets Total Liabilities Capital Drawing Revenues Expenses Total Liabilities and Owner's Equity