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CLICK HERE TO ACCESS FULL VERSION Chapter 2 - Analyzing Transactions 203. All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Cash 20,000 (3) 6,900 (5) 4,700 (6) (8)

(1) (7) (9)

(4)

Michael Dalton, Capital (1) 20,000

7,500 2,600 5,500 2,000

Accounts Receivable 4,900 (9) 4,700

(3)

Supplies 7,500

(2)

Equipment 4,500

Fees Earned (4) (7) (6)

Accounts Payable 2,600(2)

(5)

Michael Dalton, Drawing (8) 2,000 4,900 6,900

Operating Expenses 5,500

4,500

Indicate the following for each debit and credit: (a) (b)

The type of account affected (asset, liability, capital, drawing, revenue, or expense). The effect on the account, using "+" for increase and "−" for decrease.

Present your answers in the following form: Transaction

Account Debited Type Effect

Account Credited Type Effect

ANSWER:

Account Debited Account Credited Transaction Type Effect Type (1) asset + capital (2) asset + liability (3) asset + asset (4) asset + revenue (5) liability − asset (6) expense + asset (7) asset + revenue (8) drawing + asset (9) asset + asset DIFFICULTY: Challenging Bloom's: Applying LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01 ACCT.WARD.18.02-02 - 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic

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Effect + + − + − − + − −

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