1. For each transaction described, identify which component of the accounting equation increases and/or decreases. The first one is done as an example. Example: Services were performed for a client on credit. a. A credit customer paid his account. b. Supplies were purchased on credit. c. The balance owing regarding the supplies purchased in part (b) was paid. d. Last month's telephone bill was received today. It will be paid on the due date, which is 10 days from now. e. Paid the employees their weekly wage. Assets Equity Example: Increase a. b. C. d. e.