Question Two 20 marks Isshita Thought Production is owned and led by Isshita Karim. The following selected transactions were completed by Isshita Thought Production during October: 1. Received cash in exchange for common stock, $25,000. 2. Paid advertising expense, $3,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for consulting services on account, $15,700. 5. Received cash from customers on account, $8,500. 6. Received cash for services performed, $3,100. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Assets (Cash) increases by $25,000; Common Stock increases by $25,000. (2) (3) (4) (5) (6)

Question Two 20 marks Isshita Thought Production is owned and led by Isshita Karim. The following selected transactions were completed by Isshita Thought Production during October: 1. Received cash in exchange for common stock, $25,000. 2. Paid advertising expense, $3,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for consulting services on account, $15,700. 5. Received cash from customers on account, $8,500. 6. Received cash for services performed, $3,100. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Assets (Cash) increases by $25,000; Common Stock increases by $25,000. (2) (5) (6)