Imagine that you are the accountant for a new business. The owner of the company has come to you to ask about the effect of transactions that have occurred during the period on the records of the business. You must determine what the effect of these transactions are and what, if any, journal entry needs to be prepared.

1. The company provides services of $200K to a customer.
2. The company purchases $50K piece of equipment for cash.
3. The purchasing agent purchases $400 worth of supplies on account.
4. The human resources department hires a new sales representative.
5. An invoice is received for utilities of $200 but has not been paid yet.
6. $800 rent is paid.

Based on the 6 items above, determine whether they should be recorded in the accounting records. If so, what accounts should be used to prepare journal entries and whether the accounts would be increased or decreased. Be sure to discuss why you made your decisions. Discuss this question - how will debits and credits be used to record these transactions?