1-4 Application Problem: Determining how revenue, expense, and withdrawal transactions change an accounting equation 104,5,6 uses the accounts Shannon O'Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the are shown in the following accounting equation. Use the form in your Working Papers to complete this problem Assets Liabilities + Owner's Equity Trans No. Accts. Rec.- Eden Wedding Planners Accts. Pay - Shutter Supplies + Shannon O'Bryan, Capital + Prepaid + Supplies + Insurance - 200 300 200 Cash 725 -400 325 Beg Bal 1,025 400 expense) 200 New Bal 625 300 200 Instructions: For each transaction, complete the following. Transaction 1 is given as an example. a. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns using a plus sign (+) if the account increases or a minus sign (-) if the account decreases. c. For transactions that change owner's equity, write in parentheses a description of the transaction to the right of the amount. d. Calculate a new balance for each transaction in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance. Transactions: 1. Paid cash for rent, $400.00. 2. Owner withdrew equity in the form of cash, $150.00. 3. Received cash from sales, $900.00. 4. Paid cash for camera repairs, $100.00. 5. Sold services on account to Eden Wedding Planners, $400.00. 6. Received cash from sales, $650.00. 7. Paid cash for charitable contributions, $35.00 8. Received cash on account from Eden Wedding Planners, $300.00