Basic Accounting Unit Extra Credit (10 extra credit points possible)

Problem I: Assets, Liabilities, and Owner's Equity

Classify each of the following items by writing Asset, Liability, or Owner's Equity in the column at the right:

	Item	Classification
Example	Cash on Hand	Asset
1.	Truck	1.
2.	A loan	2.
3.	Mr. Anderson's capital	3.
4.	Supplies on hand	4.
5.	Personal checking account	5.
6.	Credit Card balance	6.
7.	One's net worth	7.
8.	Bank loan	8.
9.	Mr. Smith's, account receivable	9.
10.	Mr. Larson's, account payable	10.

Problem II: Transaction changes to the Accounting Equation

Write the words Increase, Decrease, both (affect is Increase & Decrease), or None, to show any change(s) in TOTAL: assets, liabilities, or owner's equity for each of the following transactions:

			A	= L	+ OE
Example:	Owner invests cash in business		Increase		Increase
1.	Paid balance due on loan	1.
2.	Paid cash for new calculator	2.
3.	Borrowed cash from bank	3.
4.	Received cash from customer	4.
5.	Sold old desk for cash	5.