Which accounts are affected

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Question - For each of the transactions, answer the questions that follow.

Transactions:

1. E. Grazio invested $ 50,000 cash in his business.

2. A building was purchased for $ 85,000. A cash payment of $ 25,000 was made and a note payable signed for the balance.

3. A $ 300 payment was made on an account payable.

4. An insurance expense of $ 800 was paid in cash.

5. E Grazio made a cash withdrawal of $ 2,500 from the business.

Required -

a) Which accounts are affected?

b) Are the accounts assets, liabilities, or owner's equity?

c) Are the accounts increased or decreased?

d) Should the affected accounts be debited or credited?

 

Reference no: EM132623169

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