Exercise 1 Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or decrease under the proper element heading. Compute the resulting accounting equation. a. Owner invested $16,500 cash in the business. b. Paid premium for two-year insurance policy, $1,500. c. Purchased a van valued at $35,000 with $5,000 down payment; the balance to be paid over three years. d. Paid the rent for the month, $900. e. Purchased $470 of supplies for cash. f. Cash sales for the month, $8,750. g. Billed credit customers $14,200 for monthly services. h. Paid monthly utility bill, $210. i. Owner withdrew $2,200 for personal use. j. Received payments of $3,300 from credit customers