Weygan, Kieso, Kimmel, Trenholm, Wamen, Navak Assignment #1 Accounting Principles. Seventh Canadian Edition CHAPTER 1 ACCOUNTING IN ACTION 1. How is profit calculated? 2. Pearl Manor is the proprietor of Manor Accounting. For each of the following transactions, indicate the effects on the company's assets, liabilities, and owner's equity. Indicate the dollar amount and whether it is an increase (+) or a decrease (-). Owner's Equity 1. Transactions Prepares a tax Assets Liabilities Capital Drawings Revenue Expenses return for a client and bills the client +68 $68. +68 2. Buys $100 office supplies on account 3. Pays for the office supplies from #2 4 Collects the $68 owed by the customer from #1. 5. Pays $600 for employee salaries 6 Does an audit for a customer and receives $1,500 TOTALS 20-Minute Quil Chapter 1-Accounting in Action 1