Levine Legal Services had the following transactions: 1. Cash is paid for the purchase of $445 of office supplies. 2.
Levine Legal Services had the following transactions:
1. Cash is paid for the purchase of $445 of office supplies.
2. Customer is billed $1,500 for services provided that day.
3. Equipment with a cost of $2,500 is purchased on account.
4. The current month's utility bill of $225 is paid in cash.
5. Cash of $500 is received for services provided that day.
6. Ruben Levine, the company's owner, withdraws $800 cash from the company's bank account for personal use.
7. Cash of $2,200 is paid to employees for the current month's wages.
8. Cash of $750 is received for services to be provided in the next month.
For each transaction, prepare a basic analysis and a debit/credit analysis. Use the following format, in which the first one has been done for you as an example:
Basic Analysis The asset Cash is decreased by $445. The asset Supplies is increased by $445.
Debit/Credit Debits increase assets: debit Supplies $445.
Analysis Credits decrease assets: credit Cash $445.