accounting

Analyse each of the following six transactions for their effect on the accounting equation (Assem Liabilities + Owner's Equity). In each case, identify the accounts and accounting elements affect amount, and the direction of the effect. You may treat income as an increase in equity, and exp decrease in equity Example: Transaction: The owner invested $10,000 to commence business Answer: Cash (asset) +10,000; capital (equity) +10,000 1. Purchased machinery worth $6,000. Paid $2000 cash and borrowed the balance from a bank 2. Purchased office supplies for $300 cash 3. Purchased inventory worth $2000 on credit 4. Collected $300 cash from a customer on account 5. Pald utilities 5400 6, S600 of wages was unpaid at the end of the accounting narind Analyse each of the following six transactions for their effect on the accounting equation (Assem Liabilities + Owner's Equity). In each case, identify the accounts and accounting elements affect amount, and the direction of the effect. You may treat income as an increase in equity, and exp decrease in equity Example: Transaction: The owner invested $10,000 to commence business Answer: Cash (asset) +10,000; capital (equity) +10,000 1. Purchased machinery worth $6,000. Paid $2000 cash and borrowed the balance from a bank 2. Purchased office supplies for $300 cash 3. Purchased inventory worth $2000 on credit 4. Collected $300 cash from a customer on account 5. Pald utilities 5400 6, S600 of wages was unpaid at the end of the accounting narind