Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables is organized as a sole proprietorship and owned by Elaine Gibson. During the past? month, Elaine?'s Inflatables has the following? transactions:

a. Gibson contributed $10,000 to the business in exchange for capital.

b. Purchased equipment for $5,000 on account.

c. Paid $400 for office supplies.

d. Earned and received $2,500 cash for service revenue.

e. Paid $400 for wages to employees.

f. Gibson withdrew $1,000 cash.

g. Earned $1,000 for services provided. Customer has not yet paid.

h. Paid $1,000 for rent.

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

QUESTION: Indicate the effects of the business transactions on the accounting equation for Elaine?'s Inflatables. Transaction? (a) is answered as a guide:

a. Gibson contributed $10,000 to the business in exchange for capital.

a. EXAMPLE: Increase asset (Cash) ; Increase equity (Gibson, Capital)

b. Purchased equipment for $5,000 on account?

b. Decrease asset? / Accounts Payable? / ; Decrease asset? / Accounts Payable?

Decrease equity? / Accounts Receiveable?/ Decrease equity? / Accounts Receiveable?

Decrease liability? / Cash? / Decrease liability? / Cash?

Increase asset? / Equipment? / Increase asset? / Equipment?

Increase equity? / Gibson, Capital? / Increase equity? / Gibson, Capital?

Increase liability? / Gibson Withdrawals? / Increase liability? / Gibson Withdrawals?

Office Suppiles/ Office Suppiles?

Rent Expense? / Rent Expense?

Service Revenue? / Service Revenue?

Utilities Expense? / Utilities Expense?

Wages Expense? / Wages Expense?