Chapter 1, Problem 4R

On June 1 of the current year, Wilson Wood opened Woodyʼs Web Services. This sole proprietorship had the following transactions during June.

1. a. Opened a business checking account and made a deposit, $9,000.
2. b. Paid rent for June for office space and computer equipment, $3,000.
3. c. Purchased office supplies (stamps, pens, etc.) on account, $1,980.
4. d. Received cash for services rendered, $4,500.
5. e. Paid creditor for office supplies purchased on account, $1,400.
6. f. Purchased office supplies for cash, $420.
7. g. Billed clients for consultations performed on account, $4,600.
8. h. Paid monthly internet service bill of $360.
9. i. Paid the secretaryʼs salary of $2,400.
10. j. Returned $300 of office supplies purchased in transaction f. Received a full refund.
11. k. Received cash from clients previously billed, $3,000.
12. l. Cash was withdrawn for ownerʼs personal use, $2,000.

How does transaction m differ from transactions a through l? In other words, why is it treated as a special item?