Daniels Company Is Owned and Operated by Thomas Daniels $\$ 55,000$

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 ac count $\$ 7,000$ .
3. Billed customers for services on account $\$ 2,565$ .
4. Received cash from customers on accounts $\$ 8,450$ .
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:
1) By Account type - (A) assets, (L)liabilities, (O)owner's (E) equity, (R)revenue, and (E) expense
2) Name of Account for the entry
3) The amount by of the transaction
4) Indicate the direction of change in the account that is affected. Note: Each transaction has two entries.