Oriole Enterprises had the following selected transactions.

1. Bo Oriole invested $6,400 cash in the business.

2. Purchased a 2-year insurance policy for $3,840.

3. Paid office rent of $1,344.

4. Performed consulting services and billed a client $8,320.

5. Bo Oriole withdrew $1,200 cash for personal use.

Prepare the debit-credit analysis for each transaction.

Debit-Credit Analysis Effect on Amounts Effect on Accounting Equation : Debit Cash 1. Debits Increase Assets 6,400 Credits Increase Owner's Equity 4: Credit Owner's Capital 6,400 2. Debits Increase Assets : Debit Equipment 3,840 Credits Increase Liabilities 4: Credit Accounts Payable 3,840 3. Debits Increase Assets : Debit Accounts Receivable 1,344 Credits Increase Revenues : Credit Service Revenue 1,344 4. Debits Decrease Liabilities : Debit Accounts Payable 8,320 Credits Decrease Assets 4: Credit Cash 8,320 5. Increase Expenses : Debit Salaries and Wages Expense 1,200 Debits Credits Decrease Assets : Credit Cash 1,200