Answer:
B. Purchased equipment for $5,000 on account?
Increased asset (plant, property, and equipment).
Increased liability (accounts payable)
C. Paid $400 for office supplies.
Increased asset (office supplies)
Decreased liability (cash)
D. Earned and received $2,500 cash for service revenue.
Increased asset (cash)
Increased revenue (service revenues)
E. Paid $400 for wages to employees.
Increased expense (wage expense)
Decreased asset (cash)
F. Gibson withdrew $1,000 cash.
Increased asset (cash)
Decreased asset (bank account)
G. Earned $1,000 for services provided. Customer has not yet paid
Increased asset (accounts receivable)
Increased revenue (accrued revenue)
H. Paid $1,000 for rent.
Increased expense (rent)
Decreased asset (cash)
I. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.
Increased liability (accrued expense)
Increased expense (utilities)
