Analyze effect of transactions on accounting equation. What will be the effects (increase, decrease, or no effect) on total assets, total liabilities, and total stockholder'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. Received cash and issued shares of common stock 2. Purchased equipment with cash 3. Received cash from customers for services rendered 4. Borrowed money from the bank 5. Received a utility bill and paid cash for it Total = assets Total liabilities Shareholder's equity + Contributed + Retained capital carnings