Nugget Co. purchases supplies for $1,950. Nugget Co. pays 20% of the balance incashand owes the balance.

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 Equity is selected, choose the reason that it has changed.

AccountWhich accounts are affected?Is the account increased or decreased?What is the amount of transaction?Why has Equity changed?Cash

Increase

$

Decrease

Accounts Receivable

Increase

$

Decrease

Supplies

Increase

$

Decrease

Tools

Increase

$

Decrease

Accounts Payable

Increase

$

Decrease

Equity

Increase

$

Choose One

Investment by Owner

Revenue

Expense

Drawing

Decrease