Question: The following transactions occur for the Wolfpack Shoe Company during the month of June:
a. Provide services to customers for $25,000 and receive cash.
b. Purchase office supplies on account for $15,000. c. Pay $6,000 in salaries to employees for work performed during the month.
1. Analyze each transaction. For each transaction, indicate by how much each category in the accounting equation increases or decreases.
2. Record the transactions. The company uses the following accounts: Cash, Supplies, Accounts Payable, Salaries Expense, and Service Revenue.
3. Post the transactions to T-accounts. Assume the opening balance in each of the accounts is zero.