Question

DigiCom repairs electronic devices. Using the format provided below. show the effects of the activities listed in (a) through 0). (Enter all amounts as positive values) a. Stacey Crowe, owner of DigiCom, invested cash of $21,000 into her business. b. DigiCom paid $3,200 to cover rent for the current month. c. DigiCom purchased supplies on credit; $1,150 d. DigiCom completed work for a client on credit; $4,100 e. DigiCom purchased a new piece of equipment by paying cash of $2,300 f. DigiCom hired a technician, to start next month, who will get paid $5,700 per month. g. DigiCom paid for the supplies purchased in (c) h. DigiCom performed work for a client and received cash of $4,100 l. DigiCom paid the administrative assistant's salary of $3,400 Assets Liabi Equity Stacey Crowe, Cash + Accounts Receivable * Parts SuppliesEquipment a. b. c. d. o. h. Totals

Answer 1

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

2

3

Increase in assets and Expenses recorded as debit and increase in liabilities recorded as credit.

4

Dr Stands for Debit and Cr stands for credit.

5

Assets

=

Liabilities

+

Equity

6

Cash

+

Accounts Receivable

+

Parts Supplies

+

Equipment

=

Accounts Payable

+

Stacey Crowe Capital

7

a.

Dr

$21,000

Cr

$21,000

8

b.

Cr

$3,200

Dr

$3,200

(Expenses will debit the equity account)

9

c.

Dr

$1,150

Cr

$1,150

10

d.

Dr

$4,100

Cr

$4,100

(Revenue is credited in equity Account)

11

e.

Cr

$2,300

Dr

$2,300

12

f.

(No entry required as work will start next month)

13

g.

Cr

$1,150

Dr

$1,150

14

h.

Dr

$4,100

Cr

$4,100

15

i.

Cr

$3,400

Dr

$3,400

16

Totals

Dr

$15,050

Dr

$4,100

Dr

$1,150

Dr

$2,300

Cr

$0

Cr

$22,600

17