BE2-5 J. A. Motzek Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated on pages 61–66 of the text.

Price: $1.99


BE2-5 J. A. Motzek Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated on pages 61–66 of the text.
Aug.
1 Opens an office as a financial advisor, investing $5,000 in cash in exchange for common
stock.
4 Pays insurance in advance for 6 months, $1,800 cash.
16 Receives $800 from clients for services provided.
27 Pays secretary $1,000 salary.