Daniels Company Is Owned and Operated by Thomas Daniels

Essay

Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:
1.Received cash from owner as additional investment, $55,000.
2.Paid creditors on account, $7,000.
3.Billed customers for services on account, $2,565.
4.Received cash from customers on account, $8,450.
5.Paid cash to owner for personal use, $2,500.
6.Received the utility bill, $160, to be paid next month.

?Indicate the effect of each transaction on the accounting equation by:
(a)Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense
b)Name of accounting equation element
c)The amount of the transaction
d)The direction of change
(increase or decrease) in the account affected
Note: Each transaction has two entries.?