Event No. 9. On June 31, 20X6 Huske's Consultants represented Mr. Debret (a client) in the court, for what the company received $700 cash. The increase in assets (Cash) is recorded as a debit. The increase in equity (Consulting Services) is recorded as a credit:

Illustration 18: Effect of cash revenue in T accounts

This is an asset source transaction:

Illustration 19: Effect of cash revenue in the horizontal model

Event No. 10. On June 31, 20X6, Huske's Consultants loaned Jak Building Company $3,000. Jak Building Company issued a 1-year, 8% note. The transaction acts to increase one asset (Notes Receivable) and decrease the other (Cash). An increase in Notes Receivable is recorded as a debit, and a decrease in Cash is recorded as a credit:

Illustration 20: Effect of cash investment in T accounts

This is an asset exchange transaction:

Illustration 21: Effect of cash investment in the horizontal model

Event No. 11. New furniture was required for the recently rented office (Event No. 6). On June 31, 20X6 Mrs. Huske paid $2,000 cash to purchase a new table and several chairs. The office equipment is expected to have a useful life of 2 years and a salvage value of $400. The purchase acts to increase one asset account (Office Equipment) and to decrease another (Cash). The Office Equipment account is debited and the Cash account is credited:

Illustration 22: Effect of furniture purchase in T accounts

This is an asset exchange transaction:

Illustration 23: Effect of furniture purchase in the horizontal model