Indicate the effect of each transaction during the month of


Indicate the effect of each transaction during the month of October 2016 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.

a. Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for capital stock.

b. Paid rent on the office building for the month, $2,000.

c. Received cash for fees earned of $5,000.

d. Purchased equipment, $7,000.

e. Borrowed $20,000 by issuing a note payable.

f. Paid salaries for the month, $1,000.

g. Received cash for fees earned of $8,000.

h. Paid dividends, $3,000.

i. Paid interest on the note, $100

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Accounting Basics: Indicate the effect of each transaction during the month of
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