3 1 Exercise 3-3 The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation. Transactions Assets = Liabilities + Stockholders' Equity NE NE N. Example: Common stock is issued in exchange for cash. 1. Equipment is purchased for cash. 2. Services are provided to customers on account 3. Services are provided to customers in exchange for cash. 4. An account payable is paid off. 5. Cash is collected on an account receivable. 6. Buildings are purchased in exchange for a three-year note payable. 7. Advertising bill for the month is paid. 8. Dividends are paid to stockholders. 9. Land is acquired by issuing shares of stock to the owner of the land