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On January 1, Merry Walker Established a Catering Service

question 74

Essay

On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions
(a) through
(f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number
(s) in the appropriate box. $On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number (s) in the appropriate box. \begin{array} { | l | l | l | } \hline \text { Transactions } & \text { Account(s) Debited } & \text { Account(s) Credited } \\ \hline \text { a. Recorded jobs completed on } & & \\ \text { account and sent invoices to } & & \\ \text { customers. } & & \\ \hline \text { b. Received an invoice for truck } & & \\ \text { expenses to be paid in February. } & & \\ \hline \text { c. Paid utilities expense } & & \\ \hline \begin{array} { l } \text { ac Received cash from customers on } \\ \text { account. } \end{array} & & \\ \hline \text { e. Paid employee wages. } & & \\ \hline \text { f. Withdrew cash for personal use. } & & \\ \hline \end{array}$ $\begin{array} { | l | l | l | } \hline \text { Transactions } & \text { Account(s) Debited } & \text { Account(s) Credited } \\\hline \text { a. Recorded jobs completed on } & & \\\text { account and sent invoices to } & & \\\text { customers. } & & \\\hline \text { b. Received an invoice for truck } & & \\\text { expenses to be paid in February. } & & \\\hline \text { c. Paid utilities expense } & & \\\hline \begin{array} { l } \text { ac Received cash from customers on } \\\text { account. }\end{array} & & \\\hline \text { e. Paid employee wages. } & & \\\hline \text { f. Withdrew cash for personal use. } & & \\\hline\end{array}$

Definitions:

Expansion Phase

A period in the business cycle when the economy moves from a trough to a peak, characterized by an increase in economic activity, production, and employment.

Prosperity

A state of economic well-being characterized by financial success, growth, and good fortune, where living conditions and quality of life are improved.

Unanticipated Inflation

Inflation that occurs when people do not expect it, often leading to disruptions in economic planning and contracts.

Debtor

An individual or organization that owes money to another entity.