Evaluate the effect of each transaction by constructing a balance sheet showing an assets side and liabilities and owners equity.

Transactions for September:

1. Purchased $1,240 of paint from Painting Paradise on credit.

2. The owner invested $10,000 of his own money in the business.

3. Harding Gordon District High School purchased $575 worth of supplies on credit.

4. Paid $800 of the account payable to Painting Paradise.

5. Purchased a computer (equipment) for $1,130 and paid cash.

6. Cash sales for the month amounted to $6,375.

7. Paid $5,000 cash for this months rent.

8. Sold $1,380 of art supplies to Main College on credit.

9. Harding Gordon District High School paid $1,500 of their A/R.

10. Bank service charges totaled to $425 which was paid out of the business bank account. 1

11. Borrowed $20,000 from the bank and placed it directly in the bank account.