Effect of transactions on accounting equation Obj. 4 What is the effect of each of the following transactions on the three elements (assets, liabilities, and stockholders’ equity) of the accounting equation?

a. Invested cash in business in exchange for common stock.

b. Paid for business expenses.

c. Paid dividends.

d. Purchased supplies on account.

e. Received cash for services performed.

AppendixLO1