I have 3 columns-Assets, Liabilities, and Equity.I need to know what the following transactions go to each account and if it is DR or CR (The Company is Copymaster Corp)1) Shareholders invested$5,000 cash to begin business2) Copymaster bought copying machine for $1.5003) Copymaster sold copies to customers for $500 each4) Copymaster p[roduced copies of Fellows Corp, its customer. The total sale amount was $1,200. Copymaster agreed to bill Fellows for the sale at the end of the month (Additional question on this one: How does billing at the end of the month affect the Asset or Liability accounts if at all)5) Copymaster paid employees $6006) Copymaster bought supplies for $3007) Colpy master paid rent $7008) Copy Master paid utilites for $5009) Copymaster bought office furniture for $50010) Copymaster had an unpaid phone bill at end of month for $100

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Asked Jan 25, 2019
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I have 3 columns-Assets, Liabilities, and Equity.
I need to know what the following transactions go to each account and if it is DR or CR (The Company is Copymaster Corp)

1) Shareholders invested$5,000 cash to begin business

2) Copymaster bought copying machine for $1.500

3) Copymaster sold copies to customers for $500 each
4) Copymaster p[roduced copies of Fellows Corp, its customer. The total sale amount was $1,200. Copymaster agreed to bill Fellows for the sale at the end of the month (Additional question on this one: How does billing at the end of the month affect the Asset or Liability accounts if at all)

5) Copymaster paid employees $600
6) Copymaster bought supplies for $300

7) Colpy master paid rent $700

8) Copy Master paid utilites for $500

9) Copymaster bought office furniture for $500

10) Copymaster had an unpaid phone bill at end of month for $100

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Expert Answer

Step 1

The Various Transaction has been explained as under:

1. Shareholders investment will increase the cash (Assets debited) and also Stockholder's equity (Equity credited)

2. Machine balance will increased (Assets Debited) and on the other hand cash balance get reduced (Assets credited) Hence, net feect is nil.

3. Sale to customer will increase the cash balance (Assets debited) annd revenues will increase which will increase the retained earnings (Equity credited)

4. Sales to customer on credit will increase the balance of Accounts receivable (Assets debited) and also revenues will increase which will increase the balance of retained earnings (Equity credited)

5. Cash paid to employees will reduce the balance of cash (Assets credited) and will increase the salaries expenses which will reduce the balance of Retained earnings (Equity debited)

6. Suppplies purchased will increa...

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