Question

Analyze the transactions described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (—) to indicate a decrease.

Assets

=

Liabilities

+

Owner's Equity

1.

Received cash for services performed.

________

________

________

2.

Purchased office equipment on credit.

________

________

________

3.

Paid employees' salaries.

________

________

________

4.	Received cash from customer in payment

on account.

________

________

________

5.

Paid telephone bill for the month.

________

________

________

6.	Paid for office equipment purchased in

transaction 2.

________

________

________

7.

Purchased office supplies on credit.

________

________

________

8.	Proprietor withdrew cash for personal

expenses.

________

________

________

9.

Obtained a loan from the bank.

________

________

________

10.

Billed customers for services performed.

________

________

________

Answer 1