For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below).

1. Decreases an asset and decreases equity.

2. Increases an asset and increases a liability.

3. Decreases an asset and decreases a liability.

4. Increases an asset and decreases an asset.

5. Increases an asset and increases equity.

a. The company pays cash toward an account payable.

b. The company purchases equipment on credit.

c. The owner invests cash in the business.

d. The company pays workers for wages earned.

e. The company purchases supplies for cash.

f. The company provides services for cash.