Identifying transaction type, its effect on the accounting equation, and whether the effec...

Identifying transaction type, its effect on the accounting equation, and whether the effect is recorded with a debit or credit

Required

Identify whether each of the following transactions is an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event affects the accounting equation by placing a + for increase, – for decrease, and NA for not affected under each of the components of the accounting equation. Finally, indicate whether the effect requires a debit or credit entry. The first event is recorded as an example.

a. Provided services on account.

b. Received cash in payment of accounts receivable.

c. Purchased land by paying cash.

d. Recognized revenue for services completed; cash collected previously.

e. Paid a cash dividend to the stockholders.

f. Paid cash in advance for one year’s rent.

g. Received cash for services to be performed in the future.

h. Incurred other operating expenses on account.

i. Paid salaries payable.

j. Recognized expense for prepaid rent that had been used up by the end of the accounting period.

k. Provided services for cash.

l. Purchased supplies on account.

 m. Recognized expense for supplies used during the period.

n. Recognized accrued interest revenue.