Business Transactions and the Accounting Equation
Determining the Effects of Transactions on the Accounting Equation
The following selected transactions were completed by Browning Delivery Service during June.
| 1. || Received cash from owner as an investment. |
Received cash for delivery services.
Purchased delivery supplies on account.
Paid rent for June.
Paid for supplies purchased in transaction 3.
Performed delivery services on account.
Paid cash to owner for personal use.
Identify the effect of each transaction on the accounting equation as:
a. Increase in an asset, decrease in an asset.
b. Increase in an asset, increase in a liability.
c. Decrease in an asset, decrease in owner's equity.
d. Increase in an asset, increase in owner's equity.
e. Decrease in an asset, decrease in a liability.