On February 1, 2021, Jessica Campbell begins her own business - Jessica’s Healthy Bites. During February, Jessica recorded the following business transactions. Indicate the effects of the following business transactions on the accounting equation, A = L + OE, for Jessica’s Healthy Bites. Transaction (a) is answered as a guide.

a. Received cash of $10,000 from issuance of common stock to stockholders.

Answer: Increase asset $10,000 (Cash); Increase equity $10,000 (Common Stock)

b. Borrowed $20,000 cash from a bank, to be repayable in two years.

c. Purchased office supplies on account, $1,000.

d. Received cash for products sold, $500.

e. Paid cash on account, $1,000.

f. Paid rent of $3,000.
g. Incurred utilities of $180 on account.
h. Paid $200 bank loan.