Transaction 7 If cash was used the impact on the account equation would be that there would be both a decrease and increase of the assets. CASH Decrease INVENTORY Increase Transaction 9 If cash was used the impact on the account equation would be that there would be both a decrease in assets and an increase in income. CASH Decrease CAPITAL ACCOUNT - Increase Learning Activity 2.2 Particulars Debit Credit Accounts Payable 300.00 Cash 300.00 Payment on account-Office Supplies Learning Activity 2.3 Transaction 1 Smart Touch Learning received $30,000 in cash from Sheena Bright and that gave capital to the business. The company deposited the money into your bank account. Bank Account Debit Capital Account-Sheena Bright Credit Transaction 2 On April 2, Smart Touch paid $20,000 in cash for a piece of land. Terrain/Land (Fixed Asset) Debit Bank Account Credit Transaction 3 On April 2, Smart Touch paid $20,000 in cash for a piece of land. Office Expense Debit Accounts Payable (Wholesale Office Supply) Credit Transaction 4 On April 8, Smart Touch charged $5,500 in cash for service revenue, which the business obtained by providing e-learning services to customers. Bank Debit Service Revenue Credit Transaction 5 On April 10, Smart Touch served customers and let them pay on a date posterior. The company earned $3,000 in revenue from credit services Accounts Receivable Debit Service Revenue Credit Transaction 6 Smart Touch paid the following out-of-pocket expenses on April 15: Computer rental expense, $600; Office rent, $1,000; Salary expenses, $1,200; Service charges General, $400. Computer Rental Expense Debit Office Rent Debit Salary Expense Debit Service Charges - Debit Service Revenue Credit Transaction 7 On April 21, Smart Touch paid $300 on the account payable created in transaction 3.. Accounts Payable (Wholesale Office Supply) Debit Bank Credit Transaction 8 Sheena Bright remodeled her home with personal funds.. Drawings-Sheena Bright Debit Bank Credit Transaction 9 On April 22, Smart Touch charged $2,000 in cash to the customer of transaction 5. Bank Debit Accounts Receivable Credit Transaction 10 On April 24, Smart Touch sold some of the land owned by the company. Bank Debit Land (Fixed Asset) Credit Transaction 11 On April 30, Smart Touch received a bill for phone service of $100 and will pay for this in the following month. Telephone Expense Debit Accounts Payable Credit Transaction 12 Also on April 30, Sheena Bright withdrew $2,000. Drawings (Sheena Bright) Debit Bank Credit