1. Debit Wages Expense; credit Wages Payable. 2. Debit Accounts Receivable; credit Construction Revenue. 3. Debit Dividends; credit Cash. 4. Debit Office Supplies; credit Accounts Payablę. 5. Debit Repairs Expense; credit Cash. 6. Debit Cash; credit Accounts Receivable. 7. Debit Tools and Equipment; credit Cash and Notes Payable. 8. Debit Accounts Payable; credit Cash. a. Indicate the effects of each transaction upon the elements of the income statement and the balance sheet. Use the code letters I for increase, D for decrease, and NE for no effect. Organize
1. Debit Wages Expense; credit Wages Payable. 2. Debit Accounts Receivable; credit Construction Revenue. 3. Debit Dividends; credit Cash. 4. Debit Office Supplies; credit Accounts Payablę. 5. Debit Repairs Expense; credit Cash. 6. Debit Cash; credit Accounts Receivable. 7. Debit Tools and Equipment; credit Cash and Notes Payable. 8. Debit Accounts Payable; credit Cash. a. Indicate the effects of each transaction upon the elements of the income statement and the balance sheet. Use the code letters I for increase, D for decrease, and NE for no effect. Organize
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A number of transactions of Claypool Construction are described below in terms of
accounts debited and credited:
1. Debit Wages Expense; credit Wages Payable.
2. Debit Accounts Receivable; credit Construction Revenue.
3. Debit Dividends; credit Cash.
4. Debit Office Supplies; credit Accounts Payablę.
5. Debit Repairs Expense; credit Cash.
6. Debit Cash; credit Accounts Receivable.
7. Debit Tools and Equipment; credit Cash and Notes Payable.
8. Debit Accounts Payable; credit Cash.
a. Indicate the effects of each transaction upon the elements of the income statement and the
balance sheet. Use the code letters I for increase, D for decrease, and NE for no effect. Organize
Income Statement
Balance Sheet
Transaction
Revenue - Expenses - Net Income Assets - Liabilities + Owners' Equity
NE
NE
D
your answer in tabular form using the column headings shown below. The answer for transaction
1 is provided as an example.
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