problem 1 william sons had the following transactions during february 1 received cas 4352242



1.William & Sons had the following transactions during February:

1. Received cash from owners investing in the business.

2. Paid wages for February.

3. Purchased equipment and signed a note payable for payment in the future.

4. Performed services for customers for cash.

5. Paid utilities for February.

6. Paid an amount on the note payable(in #3) .


For each transaction, show how its financial effects would affect the different elements of the firm's accounting system. Indicate increases with a plus (+) sign and decreases with a minus (-). Where there is no effect on an item, leave the space blank.


2.For each event below, determine which of the categories in the firm's accounting system would be changed. If a category would increase, indicate this with a plus (+). If a category would decrease, indicate this with a minus (-). If a category would not change, leave that line blank. (Item “a” is completed as an example.)

NOTE: Do NOT make entries to the accounting system here. Instead, you are determining the EFFECT of a transaction on account balances.


a.Wages earned by employees but not yet paid++

b.$2,000 of inventory was purchased using a note payable to be paid later                           

c.$8,000 was borrowed from a bank

d.Cash was distributed to owners of the firm

e.Equipment was acquired for cash

f.Inventory costing $600 was sold for $800 cash

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