For each of the transactions below, indicate the two (or more) effects on the accounting equation of the Company, owned by Joanne Cardinal.

For example:

The Company makes a sale on account of $5,000 by providing consulting services to customer Vikramjit Kaur.

In this case, underline increase under Assets because the sale triggers an account receivable. Also, underline increase under Owners Equity because of the revenue recorded. Then underline no effect under Liabilities as this transaction does not affect (increase or decrease) liabilities.

1. On August 1, Joanne invested her private motor vehicle in the business. The vehicle was worth $10,000.

Assets Increase Liabilities Increase Owner's Equity Increase

2. On August 2, she paid $2,000 for furniture for the shop. Assets Increase

Liabilities Increase

Owner's Equity Increase

Decrease Decrease Decrease

Decrease Decrease Decrease

No Effect No Effect No Effect

No Effect No Effect No Effect

No Effect No Effect No Effect

No Effect No Effect No Effect

3. On August 3, she paid $3,200 cash to rent space in a strip mall for August.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease

4. On August 15, Cardinal provided haircutting services on credit for $750.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease

5. On August 17, Cardinal received $750 cheque in the mail for services previously rendered on account.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease

No Effect No Effect No Effect

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6. On August 17, Cardinal paid wages of $250 to an assistant for working during the grand opening.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease

No Effect No Effect No Effect

7. On August 18, Cardinal interviewed a job applicant. The applicant was hired for $750 per week part-time.

Assets Liabilities Owner's Equity

Increase Increase Increase

Decrease Decrease Decrease

No Effect No Effect No Effect

8. On August 26, she purchased a van by paying half in cash and signing a note payable for the other half.

Assets Liabilities Owner's Equity

Increase Increase Increase

Decrease Decrease Decrease

No Effect No Effect No Effect

9. On August 31, the August hydro bill for $450 was received. It will be paid on September 14.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease

No Effect No Effect No Effect

No Effect No Effect No Effect

10. On August 31, Cardinal withdrew $500 cash for her personal use.

Assets Increase Liabilities Increase Owner's Equity Increase

Decrease Decrease Decrease