Question

Question 1 View Policies Current Attempt in Progress Presented below are eight business transactions. Indicate the effect of each transaction on each element of the accounting equation. (a) Purchased $255 of supplies on account. (b) Performed $533 of services on account. (c) Paid $274 of operating expenses. (d) Paid $255 cash on account for the supplies purchased in item (a) above. (e) Invested $1.117 cash in the business. (1) Owner withdrew $447 cash. (8) Hired an employee to start working the following month (h) Received $533 from a customer who had been billed previously in item (b) above. () Purchased $470 of equipment in exchange for a note payable. Use the below format, in which the first one has been done for you as an example of a transaction causes a decrease in Assets. Liabilities of Owners Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset. Liability or Equity item that was reduced. See lilustration 1-13 for example.)

Answer 1

1) Accounting equation

	Assets	=	Liabilities	+	Stockholder's equity
1.	255		255
2.	533				533
3.	-274				-274
4	-255		-255
5	1117				1117
6	-447				-447
7	NA		NA		NA
8	533
	-533
9	470		470