Cathy Hall has her own computer consulting and repair company. Her business has a lot of activity, such as paying bills, serving customers, purchasing equipment, etc. This will cause increases and decreases to her assets, liabilities, and owner's equity (net worth). Cathy knows that you have learned a lot from your Accounting course. She asks you to help her to record the transactions below:
Transaction
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Date
Transaction 08/28 Cathy invests $7,000 in cash and $800 in office equipment into the business.
08/29 She bought office equipment for cash and paid $900.
08/30 She bought office equipment on account for $400.
08/31 Cathy provided computer consulting services for cash of $3,000.
08/31 Cathy provided computer consulting services on account for $4,000. 08/31 She received $700 in cash as a partial payment from previous computer consulting services performed on account.
08/31 Cathy paid salaries expense of $600 to her only employee.
08/31 Cathy paid rent expense of $700 for August to her landlord (Paid late). 08/31 She incurred advertising expenses of $300, which will be paid by the end of September.
08/31 Cathy withdrew $200 in cash from the business for personal use.