Exercise 2.3 Objectives 2-1, 2-2, 2-3 Determining the effects of transactions on the accounting equation. Indicate the impact of each of the transactions below on the fundamental accounting equation (Assets = Liabilities + Owner's Equity) by placing a + to indicate an increase and a -to indicate a decrease. The first transaction is entered as an example. Assets Liabilities + Owner's Equity Transaction 1 TRANSACTIONS 1. Paid $2,100 for utilities. 2. Performed services for $10,500 on account. 3. Received $6,500 from charge account customers. 4. Paid salaries of $4,500 to employees. 5. Paid $8,000 to a creditor on account. 6. Owner invested $90,000 in the business. 7. Purchased $26,700 of supplies on account. 8. Purchased equipment for $21,000 cash. 9. Paid $6,000 for rent in advance). 10. Performed services for $7,800 cash