Chapter 2, Problem 13E

Explaining the Effects of Transactions on Balance Sheet Accounts Using T-Accounts

Heavey and Lovas Furniture Repair Service, a company with two stockholders, began operations on June 1. The following T-accounts indicate the activities for the month of June.

Required:

For each of the events (a)-(c), explain what transaction resulted in the indicated increases and/or decreases in the T-accounts.