From the ten (10) transactions below,

1. Provide for the effects of each of the 10 (ten) transactions below using the basic accounting equation of :

Assets = Liabilities + Owners Equity (4 MARKS)

_____ _______ ____________

Transaction 1 : Investment By Owner.

Mr. Owner decides to open a computer programming service which he names MultiComp. On September 1, 2010, he invests $15,000 cash in the business.

Transaction 2 : Purchase of Equipment for Cash.

MultiComp purchases computer equipment for $7,000 cash.

Transaction 3 : Purchase of Supplies on Credit.

MultiComp purchases for $1,600 from Acme Supply Company computer

paper and other supplies expected to last several months.

Transaction 4 : Services Provided for Cash.

MultiComp receives $1,200 cash from customers for programming services it has provided.

Transaction 5 : Purchase of Advertising on Credit.

MultiComp receives a bill for $250 from the Daily News for advertising but postpones payment until a later date.

Transaction (6) : Services Provided for Cash and Credit.

MultiComp provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account.

Transaction (7) : Payment of Expenses.

MultiComp pays the following Expenses in cash for September: store rent $600, salaries of employees $900, and utilities $200.

Transaction (8) : Payment of Accounts Payable.

MultiComp pays its $250 Daily News bill in cash.

Transaction (9). Receipt of Cash on Account.

MultiComp receives $600 in cash from customers who had been billed for services [in Transaction (6)].

Transaction (10). Withdrawal of Cash by Owner.

Mr Owner withdraws $1,300 in cash from the business for his personal use