Shannon O'Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Use the form in your Working Papers to complete this problem.
\begin{matrix} \text{Trans. } & \text{} & \text{Assets =} & \text{} & \text{Liabilities +} & \text{} & \text{Owner 's Equity}\\ \text{No.} & \text{Cash +} & \text{Accts. Rec.- Eden Wedding Planners +} & \text{Supplies +} & \text{Prepaid Insurance =} & \text{Accts. Pay.- Shutter Supplies +} & \text{Shannon O'Bryan, Capital}\\ \text{}{\begin{array}{c}{\text { Beg. Bal. }} \\ {\text { 1 }}\end{array}} & \text{725, -400} & \text{0} & \text{200} & \text{300} & \text{200} & \text{1,025, -400(expence)}\\ \text{}{\begin{array}{c}{\text { New Bal. }} \\ {2}\end{array}} & \text{325} & \text{0} & \text{200} & \text{300} & \text{200} & \text{625}\\ \end{matrix}
Trans.
No.
Beg. Bal.
1
New Bal.
2
Cash +
725, -400
325
Assets =
Accts. Rec.- Eden Wedding Planners +
0
0
Supplies +
200
200
Liabilities +
Prepaid Insurance =
300
300
Accts. Pay.- Shutter Supplies +
200
200
Owner ’s Equity
Shannon O’Bryan, Capital
1,025, -400(expence)
625
For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns using a plus sign( + ) if the account increases or a minus sign(-) if the account decreases. c. F or transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Ca lculate a new balance for each transaction in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, \$400.00$400.00. 2. Owner withdrew equity in the form of cash, \$150.00$150.00. 3. Received cash from sales, \$900.00$900.00. 4. Paid cash for camera repairs, \$100.00$100.00 5. Sold services on account to Eden Wedding Planners, \$400.00$400.00. 6. Received cash from sales, \$650.00$650.00. 7. Paid cash for charitable contributions, \$35.00$35.00. 8. Received cash on account from Eden Wedding Planners, \$300.00$300.00.
