Glencoe AccountingChapter 3:
Business Transactions and the Accounting EquationHomework PracticeDetermining 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. | 2. | Received cash for delivery services. | 3. | Purchased delivery supplies on account. | 4. | Paid rent for June. | 5. | Paid for supplies purchased in transaction 3. | 6. | Performed delivery services on account. | 7. | Paid cash to owner for personal use. |
Instructions 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. |