Question

transactions
1 received cash from sales
2 sold services on account to harmon co
3 paid cash for cell phone bill.
4 received cash on account from harmon co
5 owner withdrew equity in the form of cash.
for each transactions, determine the two accounts in the accounting equation that are changed. decide whether each account is increased or decreased. enter a plus sign (+) in the column if the account is increased. enter a minus sign (-) in the column if the account is decreased. both a plus sign (+) and a minus sign (-) can be entered, if necessary.
trans. no. assets = liabilities + owners equity
cash + accounts receivable - harmon co. + supplies + prepaid insurance = accounts payable - corona supplies + nathaniel conrad, capital

Explanation:

Step1: Analyze transaction 1

Received cash from sales increases cash (asset) and increases owner's equity (due to revenue which increases equity).
Cash: +, Nathaniel Conrad, Capital: +

Step2: Analyze transaction 2

Sold services on account to Harmon Co. increases accounts receivable (asset) and increases owner's equity (due to revenue).
Accounts Receivable - Harmon Co.: +, Nathaniel Conrad, Capital: +

Step3: Analyze transaction 3

Paid cash for cell - phone bill decreases cash (asset) and decreases owner's equity (due to an expense).
Cash: -, Nathaniel Conrad, Capital: -

Step4: Analyze transaction 4

Received cash on account from Harmon Co. increases cash (asset) and decreases accounts receivable (asset).
Cash: +, Accounts Receivable - Harmon Co.: -

Step5: Analyze transaction 5

Owner withdrew equity in the form of cash decreases cash (asset) and decreases owner's equity.
Cash: -, Nathaniel Conrad, Capital: -

Answer:

Trans. No.	Cash	Accounts Receivable - Harmon Co.	Supplies	Prepaid Insurance	Accounts Payable - Corona Supplies	Nathaniel Conrad, Capital
2		+				+
3	-					-
4	+	-
5	-					-