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Derrick Wells decided to start a dental practice. The first five transactions for the business follow.
For each transaction, (1) determine which two accounts are affected, (2) set up T accounts for the affected accounts, and (3) enter the debit and credit amounts in the T accounts.
1. Derrick invested $45,000 cash in the business.
2. Paid $15,000 in cash for equipment.
3. Performed services for cash amounting to $4,500.
4. Paid $1,900 in cash for advertising expense.
5. Paid $1,500 in cash for supplies.
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