Question

could use some help with accouting problem.

4 S1-10 Using the accounting equation to analyze transactions Elaine's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine's Inflatables is organized as a corporation. During the past month, Elaine's Inflatables had the following transactions: a. Received contributions of $10,000 in exchange for common stock. b. Purchased equipment for $5,000 on account.

Answer 1

a	Increase in cash and increase in equity by 10000
b	Increase in assets equipment and increase in liabilities Accounts payable
c	Decrease in assets cash and increase in assets supplies hence net effect is no affect
	the assets reamains same
d	increase in assets cash and increase in equity retrained earnings
e	decrease in assets cash and decrease in equity retained earnings
f	decrease in assets cash and decrease in equity retained earnings
g	increase in assets accounts receivable and increase in equity retrained earnings
h	decrease in assets cash and decrease in equity retained earnings
i	decrease in equity retained earnings and increase in liabilities Accounts payable
	so net effect is no effect on total of liabilities and stockholder equity
if any doubt please comment