+ Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (-) to indicate a decrease. Shareholders Assets Liabilities Equity 1. Received cash for services provided. 2. Purchased office equipment on credit. 3. Paid employees' salaries. 4. Received cash from customer in payment of his account receivable. 5. Paid telephone bill for the month. 6. Paid for office equipment purchased in transaction 2 7. Received cash from a customer for work to be done later. 8. Dividends were paid. 9. Obtained a loan from the bank. 10. Billed customers for services performed. Jim Cohen decides to open a courer business near the local university campus. Analyze the following transactions for the month of November in terms of their effect on the basic accounting equation Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected 1. Jim Cohen invests $25,000 cash in exchange for common shares to start a courier business on November 1 2. Purchased bicycles for $5,000 paying $3,000 in cash and the remainder due in 30 days. 3. Purchased courier bags for $1,200 cash 4. Received a bill from Campus News for $300 for advertising in the campus newspaper 5 Cash receipts from customers for courier sales amounted to $1,600. 6. Paid salanes of $300 to student workers. 7. Billed the Maple Leaf Football Team $100 for delivering banners. 8. Paid $300 to Campus News for advertising that was previously billed in Transaction 4. 9. Jim Cohen was paid dividends of $700. 10. Received a bill from City Electric for $200 for utilities for November Trans- Assets Accounts Receivable- Courier Bicycles Bags Liabilities Accounts Payable Common Shares Shareholders. Equity Retained Earnings +Revenue - Expenses - Dividends Cash 1. 2 3