A number of transactions of Claypool Construction are described below in terms of accounts debited and credited:

1.    Debit Wages Expense; credit Wages Payable.

2.    Debit Accounts Receivable; credit Construction Revenue.

3.    Debit Dividends; credit Cash.

4.    Debit Office Supplies; credit Accounts Payable.

5.    Debit Repairs Expense; credit Cash.

6.    Debit Cash; credit Accounts Receivable.

7.    Debit Tools and Equipment; credit Cash and Notes Payable.

8.    Debit Accounts Payable; credit Cash.

a.       Indicate the effects of each transaction upon the elements of the income statement and the bal- ance sheet. Use the code letters I for increase, D for decrease, and NE for no effect. Organize your answer in tabular form using the column headings shown below. The answer for transac- tion 1 is provided as an example.

 

 

Â	Income Statement	Â	Balance Sheet
Transaction 1	Revenue - Expenses = Net Income NE                  I                     D	Â	Assets = Liabilities + Owners’ Equity NE                I                        D

 

 

 

 

 

 

 

 

b.       Write a one-sentence description of each transaction.