Analyze effect of transactions on accounting equation. What will be the effects (increase, decrease, or no effect) on total assets, total liabilities, and total shareholder's equity in each of the following situations? When shareholder's equity changes, note whether it is contributed capital or retained earnings that changes. Identify whether each transaction is an operating, investing, or financing transaction. (LO 2, 4)

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1. Purchased land with cash 2. Performed services and received cash from customers 3. Received cash from the issue of shares of common stock 4. Paid cash for inventory 5. Sold inventory for cash Total = assets Total liabilities Shareholder's equity + Contributed + Retained capital carnings