Question

The May transactions of Step Aside Corporation were as follows.

May 4 paid $700 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,800.
8 Purchased supplies for $850 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $530 in cash.
22 Received bill for equipment repairs of $900.
29 Paid $1,200 for 12 months of insurance policy.

Answer 1

4 paid $700 due for supplies previously purchased on account.

Cash account affected (Asset)

Accounts Payable affected (Liability)

7 Performed advisory services on account for $6,800.

Accounts Receivable affected (Asset)

Service Revenue affected(Equity)

8 Purchased supplies for $850 on account.

Supples affected (Asset)

Account Payable affect (Liability)

9 Purchased equipment for $1,000 in cash.

Equipment (Asset)

Cash (Asset)

17 Paid employees $530 in cash.

Payroll (Equity)

Cash (Asset)

22 Received bill for equipment repairs of $900.

Repair expense (Equity)

Account Payable (Liability)

29 Paid $1,200 for 12 months of insurance policy.

Coverage begins June 1 Prepaid rent (Asset)

Cash (Asset)