Katie's Wedding Planning Service completed the following transactions:

a. Billed clients for service, $1,250.
b. Completed work for clients $200 on account.
c. Received a bill for utilities to be paid later, $120.
d. Collected $700 cash for services performed.
e. Paid the amount due for utilities.
f. Withdrew $500 cash for personal use.

Required: Record the above transactions in the expanded accounting equation. Note that the items have beginning balances.

Katie's Wedding Planning Service

ASSET ASSET = LIAB. OWNER'S EQUITY
Cash + Accts.Rec. = Accts Payable Katie, Capital +Rev. -Exp -Katie With.
beg. $800 $85 = $300 $235 $900 $400 $150
a.
b.
c.
d.
e.
f.
T
What will be an ideal response?

Answer: Katie's Wedding Planning

ASSET ASSET = LIAB. OWNER'S EQUITY
Cash + Accts.Rec. = Accts Payable Katie, Capital +Rev. -Exp -Katie With.
beg. $800 $85 = $300 $235 $900 $400 $150
a. 1,250 = 1,250
b. 200 = 200
c. = 120 120
d. 700 = 700
e. -120 = -120
f. -500 = 500
T $880 $1,535 = $300 $235 $3,050 $520 $650