Question

Indicate how each business transactions affects the basic accounting equation for the following: - Paid cash...

Indicate how each business transactions affects the basic accounting equation for the following:

- Paid cash fir advertising services
- Purchased supplies for cash
- Purchased equipament on account
- Issued common stock to investors in exchange for cash
- Provided services on accounts to customers
- Paid an account payable im full
Business   Accounting   
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Answer #1
Details Assets = Liabilities + Shareholder's Equity
1- Paid cash for advertising services Decrease Not effect Decraese
2-Purchased supplies for cash Increase No effect No effect
Decrease
3- Purchased equipament on account Increase Increase No effect
4- Issued common stock to investors in exchange for cash Increase No effect Increase
5-Provided services on accounts to customers Increase No effect Increase
6- Paid an account payable in full Decrease Decrease No effect
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