1. Ford Corporation sells craft supplies and has provided several transactions below. Identify the effect on the accounting equation of each transaction by selecting from answers A through G. Print the letter of the correct effect in the answer space provided. You may use each letter more than once or not at all.

Accounting Equation Effects

A. Increase Assets and Increase Liabilities

B. Increase Assets and Increase Retained Earnings

C. Increase Assets and Increase Common Stock

D. Decrease Assets and Decrease Liabilities

E. Decrease Assets and Decrease Retained Earnings

F. Decrease Assets and Decrease Common Stock

G. Increase Assets and Decrease Assets

Answers	Transactions
	Purchased frames for cash
	Received cash by borrowing from the bank
	Purchased building and land in exchange for a note payable
	Received cash from investors in exchange for the issuance of common stock
	Paid salaries for the current month
	Sold frames to customers for cash
	Paid a portion of the principal borrowed on a bank loan
	Paid dividends to shareholders