Question

1. Identifying Transactions

   Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts:

   Cash (1) 50,000 (2) 3,400 (7) 8,700 (3) 5,000 (4) 4,850 (6) 2,500 (9) 1,000		Equipment (3) 15,000		Dividends (9) 1,000
   Accounts Receivable (5) 18,200 (7) 8,700		Accounts Payable (6) 2,500 (3) 10,000		Service Revenue (5) 18,200
   Supplies (2) 3,400 (8) 1,100		Common Stock (1) 50,000		Operating Expenses (4) 4,850 (8) 1,100

   Indicate for each debit and each credit: whether an asset, liability, stockholders' equity, dividend, revenue, or expense account was affected and whether the account was increased or decreased.

   	Account Debited		Account Credited
   Transaction	Type	Effect	Type	Effect
   (1)
   (2)
   (3)
   (4)
   (5)
   (6)
   (7)
   (8)
   (9)

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Answer 1

	Account debited		Account Credited
Transaction	Type	Effect	Type	Effect
1	asset	+	owner's equity	+	(introduced capital increase in cash and capital)
2	asset	+	asset	-	(purchase of supplies)
3	asset	+	asset	-	(purchase of equipment partly cash and partly on credit)
			liability	+
4	expense	+	asset	-	(payment of operating expenses)
5	asset	+	revenue	+	(sales made on account)
6	liability	-	asset	-	(payment of accounts payable)
7	asset	+	asset	-	(receipt of cash from sales on account)
8	expense	+	asset	-	(supplies expense)
9	drawing	+	asset	-	(payment of dividends)