Question 2:

In a double entry accounting system, each transaction affects at least two different accounts. For the following transactions identify the two accounts and what type of account is each, asset, liability, or equity account. (40 points, 1 point per answer)

1. On August 1, Madison Harris, the owner invested $6,500 cash into the company.

Name of Accounts Affected:	Type of Account:
cash	asset

2. On August 2, the company paid $2,100 cash for an insurance policy covering the next 24 months.

Name of Accounts Affected:	Type of Account:

3. On August 5, the company purchased Office Supplies for $800 on credit.

Name of Accounts Affected:	Type of Account:

4. On August 7, the company received $2,500 cash for services rendered.

Name of Accounts Affected:	Type of Account:

5. On August 10, the company paid $800 on account for the supplies purchased on Aug 5.

Name of Accounts Affected:	Type of Account:

6. On August 15, the company billed Lee Services $1,500 for services provided on that date.

Name of Accounts Affected:	Type of Account:

7. On August 21, the owner withdrew $250 cash.

Name of Accounts Affected:	Type of Account:

8. On August 25, the company purchased equipment for $1,000 cash.

Name of Accounts Affected:	Type of Account:

9. On August 31, the company paid $375 cash for utilities.

Name of Accounts Affected:	Type of Account:

10. On August 31, the company paid $1,500 in advance for 3 months rent.

Name of Accounts Affected:	Type of Account: