[Q9] Use the accounting equation, analyze the following transactions and identif

Question

[Q9] Use the accounting equation, analyze the following transactions and identify the effect of each on assets, liabilities, and equity, as applicable. Use a (+) to denote an increase and a (-) to denote a decrease, if anv, use NA when no effect on any of the elements Assets Liabilities+ Equi 2 4 6 9 10 12 13 15 1. Issued share capital for cash 2. Purchased a truck for cash 3. Received a bank loan to pay for equipment 4. Made a deposit for electricity service to be provided in the future 5. Paid rent for the month just ended 6. Signed a new union contract that provides for increased wages in the future 7. Hired a messenger service to deliver letters during a mail strike 8. Received a parcel; paid the delivery service 9. Billed customers for services performed 10. Made a cash payment to satisfy an outstanding obligatioin 11. Received a pavment of cash in satisfaction of an amount owed by a customer 12. Collected cash from a customer for services rendered 13. Paid cash for truck operating expenses (gas, oil 14. Issued shares in the company to pay off a loan 15. paid a dividend in cash.

Explanation / Answer

Effect of transaction :

(-)

(+)

(+)

(-)

Assets = Liabilities + Shareholder's equity 1. (+) (+) 2.

(-)

(+)

3. (+) (+) 4. (+) (+) 5. (-) (-) 6. NA NA NA 7. NA NA NA 8. (-) (-) 9. (+) (+) 10. (-) (-) 11.

(+)

(-)

12. (+) (+) 13. (-) (-) 14. (-) (+) 15. (-) (-)

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