5) What effect do the transactions below have on the owners equity? For your answers use one of the following: Increase, decrease or no effect.

a) Fran invested $5,000 in the business

b) She bought equipment on account $2,400

c) She paid half of the bill owed to the creditor

d) She received $2,000 in fees

e) She paid salaries for the week, $800

f) She withdraw $400 from the business

g) She paid rent for the month $900

h) Inventory of supplies decreased $350 during the month

6) Create the following transactions:

(1) The business recorded the $250,000 cash investment made by Lisa Hunter. (2) Paid $100,000 cash for land.

(3) Bought $7,000 of office supplies on account.

(4) Received $30,000 cash from clients for service revenue earned.

(5) Performed services for clients on account, $25,000.

(6) Paid cash expenses: rent, $4,000; employee salaries, $6,500; utilities, $1,500.

(7) Paid $5,000 on the account payable created in Transaction 3.

(8) Remodelled Hunters personal residence. This is not a transaction of the business.

(9) Collected $15,000 on the account receivable created in Transaction 5.

(10) The business paid $6,000 cash to Hunter as a withdrawal.