First, give an example of a transaction that has the following results and what would the entry look like?

(a)

A decrease in an asset and a decrease in a liability.

(b)

A decrease in one asset and an increase in another asset.

(c)

A decrease in one liability and an increase in another liability.

Second, do the following events represent business transactions? Explain your answer in each case.(a)

A computer is purchased on account.

(b)

A customer returns merchandise and is given credit on account.

(c)

A prospective employee is interviewed.

(d)

The owner of the business withdraws cash from the business for personal use.

(e)

Merchandise is ordered for delivery next month.