Inferring Transactions from Statement of Financial Position Changes}

Each of the changes in the statement of financial position below is associated with a particular transaction:

a. Equipment increases by \(\$ 5,000\) and cash decreases by \(\$ 5,000\).

b. Cash increases by \(\$ 4,100\) and shareholders' equity increases by \(\$ 4,100\).

c. Supplies increases by \(\$ 400\) and accounts payable increases by \(\$ 400\).

d. Supplies decreases by \(\$ 250\) and shareholders' equity decreases by \(\$ 250\).

Required:

YOUDECIDE Describe the nature of each transaction listed above.

\section*{OBJECTIVE 4 Exercise