King Co. places an advertising in the local paper and pays $1,300.

Required:

For the transaction above, complete the following:

(a) Select the accounts that are affected (there will be at least two).

(b) Are the selected accounts increased or decreased?

(c) What is the dollar amount of change in the accounts?

(d) If Retained Earnings is selected, choose the reason that it has changed.

Account	Which accounts are affected?	Is the account increased or decreased?	What is the amount of transaction?	Why has Retained Earnings changed?
Cash		Increase	$
		Decrease
Accounts Receivable		Increase	$
		Decrease
Supplies		Increase	$
		Decrease
Tools		Increase	$
		Decrease
Accounts Payable		Increase	$
		Decrease
Capital Stock		Increase	$
		Decrease
Retained Earnings		Increase	$	Choose OneRevenueExpenseDividends
		Decrease