For each of the following situations, indicate how it affects: total assets; total liabilities; and equity. For example, when a company borrows money from a bank, it has more cash and it also has a liability. Therefore, assets increase, liabilities increase, but equity is unchanged.

A. A company pays money to its shareholders as dividends.

B. An accounting firm provides services to a client, and receives cash as payment.

C. An accounting firm provides services to a client, and the client promises to pay cash in the next accounting period.

D. A manufacturer buys raw materials “on credit,” meaning it will pay for them later.

E. A company buys stock in Microsoft for cash.

F. A company had previously made a sale to a customer on credit in the last accounting period. This period, it receives the customer’s cash payment.

G. A clothing store sells a shirt to a customer for cash. The price is greater than the amount the store had to pay to buy the shirt.

H. New investors buy stock in the company.

I. The company receives money in advance from customers for services that the company will provide next year.