1.Determine the increases and decreases in the five accounting types.

Purchased inventory of $3,500 on account.

Assets increase, liabilities increase.

Assets decrease, liabilities increase.

Assets decrease, equity decreases, expenses increase.

Liabilities decrease, equity increases, revenues increase.

2.Determine the increases and decreases in the five accounting types.

Sold inventory costing $800, for $1,500 cash.

Assets increase, liabilities increase.

Assets increase, liabilities increase, revenues increase.

Assets decrease, equity decreases, expenses increase.

Assets increase, equity increases, revenues increase, expenses increase.

3.

Determine the increases and decreases in the five accounting types.

Recorded depreciation of $3,000 for the period.

Assets increase, equity increases, expenses increase.

Assets decrease, liabilities decerease.

Assets decrease equity decreases, expenses decrease.

Assets decrease, equity decreases, expenses increase.

Determine the increases and decreases in the five accounting types.

Paid for the inventory in Question 1.

Assets increase, liabilities increase.

Assets decrease, liabilities decrease.

Assets decrease, equity decreases, expenses increase.

Liabilities decrease, equity increases, revenues increase.