Question

1. In the columns below, indicate whether each transaction caused an increase (+), a decrease (-), or no change (NC) in assets, liabilities, and owner's equity. (20%) Transaction Assets Liabilities Owner's Equity 1. Investment by owner 2. Paid cash on account 3. Purchase office Supplies on Account 4. Collection of accounts receivable |||||| 5. Withdrawal of cash by owner 6. Billed customers for services performed 7. Paid rent expense 8. Paid cash on accounts payable 9. Purchased equipment; signed a note payable 10. Borrowed money from the bank

Answer 1

Classfication

		Assets	Liabilities	Stockholder's equity
1.	Investment by owner	NC	NC	NC
2	Paid cash on account	-	-	NC
3	Purchase office supplies on account	+	+	NC
4	Collection of account receivable	NC	NC	NC
5	Withdrawal of cash by owner	-	NC	-
6	Billed customers for services performed	+	NC	+
7	Paid rent expense	-	NC	-
8	Paid cash on account payable	-	-	NC
9	Purchase equipment signed a note payable	+	+	NC
10	Borrowed money from the bank	+	+	NC