Chapter 3 - The Accounting Information System - Review and Practice - Brief Exercises - Page 128: BE3-2

Aug. 2 Cash................................................................................. 12,000 Equipment..................................................................... 2,500 Agazzi Repair Shop, Capital............................................ 14,500 7 Supplies......................................................................... 500 Accounts Payable.............................................. 500 12 Cash................................................................................. 1,300 Accounts Receivable................................................. 670 Service Revenue................................................. 1,970 15 Rent Expense............................................................... 600 Cash....................................................................... 600 19 Supplies Expense....................................................... 130 Supplies (500–270)..................................... 230

Aug 2. Debit cash and equipment account and credit the company capital account 7. Debit supplies and credit accounts payable 12. Debit the amount earned on that day, both paid and billed (accounts receivable), and credit the service revenue account. 15. Debit the rent expense (reduce liability) and credit cash account (money spent) 19. Debit the supplies expense account with the difference between what we bought and what we have (500-270)= 230, and credit the supplies account for the same amount (230).