Identifying effects of transactions on financial statements Identify how each of the following separate transactions affects financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction affects net income. For increases, place " a " in the column or columns. For decreases, place a “—” in the column or columns. If both an increase and a decrease occur, place a “+/—” in the column or columns. The first transaction is completed as an example.

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Balance Sheet Income Statement Total Total Total Net Transaction Assets Liab. Equity Income 1 Owner invests cash in business + + 2 Receives cash for services provided 3 Pays cash for employee wages 4 Incurs legal costs on credit 5 Borrows cash by signing long-term note payable 6 Owner withdraws cash! 7 Buys land by signing note payable 8 9 10 Provides services on credit Buys office equipment for cash Collects cash on receivable from (8)