EXERCISES Exercise 1 REVIEW: TRANSACTION ANALYSIS Before a transaction is recorded in the journal, it should be analyzed to determine the following: (a) What accounts are affected by the transaction. (b) Whether each affected account is to be increased or decreased. (c) Whether the increase or decrease is to be accomplished by a debit or credit. In the following list of transactions for Abbott Service Co., indicate the names of the accounts to be debited and credited. Place a check mark in either the plus (+) or minus (-) column to indicate whether the account has been increased or decreased. The first transaction is entered as an illustration. Exercise 2 (Continued) Required: Enter the following transactions in the two-column journal provided on the next page. 2... May 1 Susan invested $5,000 cash to start the business. 5 Purchased office furniture on account, $3,000. 9 Paid office rent for the month, $450. 10 Received fees for referral services, $500. 15 Made payment on account (for office furniture), $100. 20 Earned referral fees: $125 cash and $175 on account. 25 Paid wages to clerk for part-time work, $400. 28 Withdrew cash for personal use, $100. 29 Received cash for referral services previously rendered, $150