Reference no: EM132570338
Debra King started her own consulting firm, Cullumber Consulting, on May 1, 2020. The following transactions occurred during the month of May.
May 1 Trixie invested $6,000 cash in the business.
2 Paid $950 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $130 to advertise in the County News.
9 Received $3,800 cash for services performed.
12 Withdrew $1,100 cash for personal use.
15 Performed $5,000 of services on account.
17 Paid $2,100 for employee salaries.
20 Made a partial payment of $300 for the supplies purchased on account on May 3.
23 Received a cash payment of $3,500 for services performed on account on May 15.
26 Borrowed $4,900 from the bank on a note payable.
29 Purchased equipment for $4,300 on account.
30 Paid $300 for utilities.
Question 1: Show the effects of the previous transactions on the accounting equation. (If a transaction results in a decrease in Assets, Liabilities or Owners Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)