Exercise 1-14 (Static) Identifying effects of transactions on the accounting equation LO P1 Identify the impact of each of the given transactions on the accounting equation. Transactions a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The company pays workers for wages eamed. e. The company purchases supplies for cash The company provides services for cash. Impacts Increases an asset and increases equity. Increases an asset and increases a liability. Prey 3 of 00 Next >