Using the Column Headings Provided Below, Show the Effect, If

question 5

Essay

Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity.
(1.) The firm borrowed $2,000 from the bank; a short-term note was signed.
(2.) Merchandise inventory costing $750 was purchased; cash of $200 was paid and the balance is due in 30 days.
(3.) Employee wages of $1,000 were accrued at the end of the month.
(4.) Merchandise that cost $350 was sold for $450 in cash.
(5.) This month's rent of $700 was paid.
(6.) Revenues from services during month totaled $6,500. Of this amount, $2,000 was received in cash and the balance is expected to be received within 30 days.
(7.) During the month, supplies were purchased on account at a cost of $520, and debited into the Supplies (asset) account. A total of $400 of supplies were used during the month.
(8.) Interest of $240 has been earned on a note receivable, but has not yet been received. $$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Transaction/ } \\\text { Adjustment }\end{array} & \text { Assets } & & \text { Liabilities } & \begin{array} { c } \text { Stockholders' } \\\text { Equity }\end{array} & \text { Net Income } \\\hline 1 . & & & & & \\\hline 2 . & & & & & & \\\hline \text { 3. } & & & & & & \\\hline 4 . & & & & & & \\\hline 5 . & & & & & & \\\hline 6 . & & & & & & \\\hline \text { 5. } & & & & & & \\\hline & & & & & & \\\hline\end{array}$$

---

Definitions:

Schwann Cells

A type of glial cell in the peripheral nervous system that encircles nerve fibers, providing insulation (myelination) and enhancing signal transmission.

Oligodendroglia

Glial cells in the central nervous system that produce myelin, a substance that insulates axons to increase the speed at which neural impulses propagate.

Myelin

The fatty substance that surrounds the axon of some nerve cells, forming an insulating layer that speeds up signal transmission.

Oligodendroglial Cells

Oligodendroglial cells are a type of glial cell in the central nervous system responsible for producing and maintaining the myelin sheath, which insulates nerve fiber to enhance signal transmission.