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Regina Delgado owns a business called Hot Suds Car Wash. She uses the following accounts:

General Ledger 101 Cash in Bank201 Accounts Payable—110 Accounts Receivable—Allen Vacuum SystemsValley Auto301 Regina Delgado, Capital125 Office Equipment 130 Office Furniture 135 Car Wash Equipment \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{201 Accounts Payable—}\\ \text{110 Accounts Receivable—} & \text{Allen Vacuum Systems}\\ \text{Valley Auto} & \text{301 Regina Delgado, Capital}\\ \text{125 Office Equipment} & \text{ }\\ \text{130 Office Furniture} & \text{ }\\ \text{135 Car Wash Equipment} & \text{ }\\ \end{matrix}

For each transaction: 1. Determine which accounts are affected. 2. Prepare T accounts for the accounts affected. 3. Enter the debit and credit amounts in the T accounts.

DateTransactionsMay 51. Regina Delgado invested an additional $40,000 cash in her business.122. Bought another car wash system on account for $27,000 from Allen Vacuum Systems.173. Regina Delgado transferred some of her personal office furniture, valued at $3,750, to her business.244. Hot Suds Car Wash purchased additional office equipment for $7,500. Payment was made by check.295. Hot Suds Car Wash sold some surplus car washing equipment on account to Valley Auto for $1,200.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 5} & \text{1. Regina Delgado invested an additional $\$40,000$ cash in her business.}\\ \text{12} & \text{2. Bought another car wash system on account for $\$27,000$ from Allen Vacuum Systems.}\\ \text{17} & \text{3. Regina Delgado transferred some of her personal office furniture, valued at $\$3,750$, to her business.}\\ \text{24} & \text{4. Hot Suds Car Wash purchased additional office equipment for $\$7,500$. Payment was made by check.}\\ \text{29} & \text{5. Hot Suds Car Wash sold some surplus car washing equipment on account to Valley Auto for $\$1,200$.}\\ \end{array}

Regina Delgado, owner of Hot Suds Car Wash, uses these accounts:

General Ledger 101 Cash in Bank401 Wash Revenue125 Office Equipment510 Maintenance Expense205 Accounts Payable—520 Rent ExpenseO’Brian’s Office Supply 301 Regina Delgado, Capital 305 Regina Delgado, Withdrawals \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{125 Office Equipment} & \text{510 Maintenance Expense}\\ \text{205 Accounts Payable—} & \text{520 Rent Expense}\\ \text{O’Brian’s Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \end{matrix}

In your working papers: 1. Determine which accounts are affected for each transaction. 2. Prepare T accounts for the accounts affected. 3. Enter the amount of the debit and the amount of the credit in the T accounts.

DateTransactionsJan. 71. Received a check for $1,675 for car wash services.122. Paid the monthly rent of $450 by writing Check 212 .153. Regina Delgado withdrew $250 for her personal use, Check 213.294. Had the computer repaired at O’Brian’s Office Supply for $245 and was given until next month to pay. \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 7} & \text{1. Received a check for $\$1,675$ for car wash services.}\\ \text{12} & \text{2. Paid the monthly rent of $\$ 450$ by writing Check 212 .}\\ \text{15} & \text{3. Regina Delgado withdrew $\$ 250$ for her personal use, Check 213.}\\ \text{29} & \text{4. Had the computer repaired at O'Brian's Office Supply for $\$ 245$ and was given until next month to pay. }\\ \end{array}

Regina Delgado owns a business called Hot Suds Car Wash. She uses the following chart of accounts.

General Ledger 101 Cash in Bank401 Wash Revenue105 Accts. Rec.—Linda Brown405 Wax Revenue110 Accts. Rec.—Valley Auto410 Interior Detailing Revenue125 Office Equipment501 Advertising Expense130 Office Furniture505 Equipment Rental Expense135 Car Wash Equipment510 Maintenance Expense201 Accts. Pay.—Allen520 Rent ExpenseVacuum Systems525 Salaries Expense205 Accts. Pay.—O’Brian’s530 Utilities ExpenseOffice Supply 301 Regina Delgado, Capital 305 Regina Delgado, Withdrawals 310 Income Summary \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{105 Accts. Rec.—Linda Brown} & \text{405 Wax Revenue}\\ \text{110 Accts. Rec.—Valley Auto} & \text{410 Interior Detailing Revenue}\\ \text{125 Office Equipment} & \text{501 Advertising Expense}\\ \text{130 Office Furniture} & \text{505 Equipment Rental Expense}\\ \text{135 Car Wash Equipment} & \text{510 Maintenance Expense}\\ \text{201 Accts. Pay.—Allen} & \text{520 Rent Expense}\\ \text{Vacuum Systems} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—O’Brian’s} & \text{530 Utilities Expense}\\ \text{Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \text{310 Income Summary} & \text{ }\\ \end{matrix}

Record the following transactions on page 1 of the general journal in your working papers.

DateTransactionsJan. 1Regina Delgado invested $12,000 in the business, Memorandum 41.5Purchased $5,000 in desks, chairs, and cabinets from O’Brian’s Office Supply on account, Invoice 1632.8Deposited $1,600 for income received from car washes for the week, Receipt 101.10Paid the Village Bulletin $75 for running an ad, Check 301.13Regina Delgado withdrew $900 for personal use, Check 302.17Billed Valley Auto $400 for interior detailing, Sales Invoice 102.18Paid O’ Brian’s Office Supply $2,500 as an installment payment on account, Check 303.20Regina Delgado transferred to the business an electronic calculator valued at $350, Memorandum 42.22Wrote Check 304 for $600 to Shadyside Realty for the office rent. 24Purchased $1,500 in car wash equipment from Allen Vacuum Systems on account, Invoice 312.26Received a $400 check from Valley Auto in full payment of its account, Receipt 102.30Issued Check 305 for $2,500 to O Brian’s Office Supply for the balance due on account.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Regina Delgado invested $\$ 12,000$ in the business, Memorandum 41.}\\ \text{5} & \text{Purchased $\$ 5,000$ in desks, chairs, and cabinets from O'Brian's Office Supply on account, Invoice 1632.}\\ \text{8} & \text{Deposited $\$ 1,600$ for income received from car washes for the week, Receipt 101.}\\ \text{10} & \text{Paid the Village Bulletin $\$ 75$ for running an ad, Check 301.}\\ \text{13} & \text{Regina Delgado withdrew $\$ 900$ for personal use, Check 302.}\\ \text{17} & \text{Billed Valley Auto $\$ 400$ for interior detailing, Sales Invoice 102.}\\ \text{18} & \text{Paid O' Brian's Office Supply $\$ 2,500$ as an installment payment on account, Check 303.}\\ \text{20} & \text{Regina Delgado transferred to the business an electronic calculator valued at $\$ 350$, Memorandum 42.}\\ \text{22} & \text{Wrote Check 304 for $\$ 600$ to Shadyside Realty for the office rent. }\\ \text{24} & \text{Purchased $\$ 1,500$ in car wash equipment from Allen Vacuum Systems on account, Invoice 312.}\\ \text{26} & \text{Received a $\$ 400$ check from Valley Auto in full payment of its account, Receipt 102.}\\ \text{30} & \text{Issued Check 305 for $\$ 2,500$ to $\mathrm{O}^{\prime}$ Brian's Office Supply for the balance due on account.}\\ \end{array}


Hot Suds Car Wash uses the following accounts:

Assets=Liabilities+Owner’s EquityCash in Bank Accounts Payable Regina Delgado,Accounts Receivable   CapitalOffice Equipment    Office Furniture    Car Wash Equipment    \begin{matrix} \text{Assets} & \text{$=$} & \text{Liabilities} & \text{$+$} & \text{Owner’s Equity}\\ \hline \text{Cash in Bank} & \text{ } & \text{Accounts Payable} & \text{ } & \text{Regina Delgado,}\\ \text{Accounts Receivable} & \text{ } & \text{ } & \text{ } & \text{Capital}\\ \text{Office Equipment} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Office Furniture} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Car Wash Equipment} & \text{ } & \text{ } & \text{ } & \text{ }\\ \end{matrix}

Use a form similar to the one that follows. For each transaction: 1. Identify the accounts affected. 2. Classify the accounts. 3. Determine the amount of the increase (+) or decrease (-) for each account affected. The first transaction is completed as an example.

Trans.Accounts ClassificationAmount of Increase (+) Affected or Decrease (-)1.Cash in BankAsset+$25,000 Regina   Delgado,   CapitalOwner’s Equity+$25,000\begin{matrix} \text{Trans.} & \text{Accounts } & \text{Classification} & \text{Amount of Increase (+)}\\ \text{ } & \text{Affected} & \text{ } & \text{or Decrease (-)}\\ \hline \text{1.} & \text{Cash in Bank} & \text{Asset} & \text{$+\$25,000$}\\ \text{ } & \text{Regina} & \text{ } & \text{ }\\ \text{ } & \text{Delgado,} & \text{ } & \text{ }\\ \text{ } & \text{Capital} & \text{Owner’s Equity} & \text{$+\$25,000$}\\ \end{matrix}

DateTransactionsJan. 11.Regina Delgado, the owner, invested $25,000 cash in the business.42.Bought car wash equipment with cash for $12,000.53.Purchased, on account, $2,500 of office equipment.104.Wrote a check for the monthly rent, $800.125.Received cash for services performed, $1,000.156. The owner withdrew $600 cash from the business for personal use.207. Purchased a desk for $1,000, paying $200 cash and agreeing to pay the balance of $800 in 30 days.258. Provided services worth $600 on account.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1.Regina Delgado, the owner, invested $\$25,000$ cash in the business.}\\ \text{4} & \text{2.Bought car wash equipment with cash for $\$12,000$.}\\ \text{5} & \text{3.Purchased, on account, $\$2,500$ of office equipment.}\\ \text{10} & \text{4.Wrote a check for the monthly rent, $\$800$.}\\ \text{12} & \text{5.Received cash for services performed, $\$1,000$.}\\ \text{15} & \text{6. The owner withdrew $\$600$ cash from the business for personal use.}\\ \text{20} & \text{7. Purchased a desk for $\$1,000$, paying $\$200$ cash and agreeing to pay the balance of $\$800$ in 30 days.}\\ \text{25} & \text{8. Provided services worth $\$600$ on account.}\\ \end{array}


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In this exercise, we will identify and classify the accounts affected by the given transactions considering their decrease and increase.

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