Harrold Ltd. records their business transactions into the basic accounting equation.

For each of the following independent business activities, indicate the effect on the basic accounting equation.

NOTE: The questions are multi-selection questions. For each business activity choose ALL that apply.

Received a phone bill on March 31 for $190. The bill will be paid in early April.

Question 31 options:

a)	Decrease equity

b)	Decrease assets

c)	Increase equity

d)	Increase assets

e)	This is an event, not a transaction.

f)	Increase liabilities

g)	Decrease liabilities

Collected $800 of accounts receivable from a customer.

Question 32 options:

a)	Increase equity

b)	Decrease equity

c)	Increase assets

d)	This is an event, not a transaction.

e)	Decrease assets

f)	Increase liabilities

g)	Decrease liabilities

A total of $281 of supplies, purchased on account in July, were used in August.

Question 33 options:

a)	Decrease liabilities

b)	Increase liabilities

c)	This is an event, not a transaction.

d)	Decrease assets

e)	Increase assets

f)	Decrease equity

g)	Increase equity

Paid $500 dividend in cash to the owners.

Question 34 options:

a)	Increase liabilities

b)	Increase equity

c)	Decrease liabilities

d)	Increase assets

e)	Decrease assets

f)	This is an event, not a transaction.

g)	Decrease equity

Provide $1,000 of services to a customer who paid in advance last month.

Question 35 options:

a)	Decrease assets

b)	Decrease equity

c)	Decrease liabilities

d)	Increase assets

e)	Increase equity

f)	This is an event, not a transaction.

g)	Increase liabilities

Opening a new bank account. The bank will charge $10 at the end of every month.

Question 36 options:

a)	Decrease equity

b)	Increase liabilities

c)	This is an event, not a transaction.

d)	Increase assets

e)	Increase equity

f)	Decrease assets

g)	Decrease liabilities

Purchase $1,000 of inventory on account.

Question 37 options:

a)	Increase equity

b)	Decrease assets

c)	Increase liabilities

d)	Decrease liabilities

e)	Decrease equity

f)	This is an event, not a transaction.

g)	Increase assets

Provided $2,350 of services to a customer on account.

Question 38 options:

a)	This is an event, not a transaction.

b)	Decrease assets

c)	Increase assets

d)	Decrease equity

e)	Increase equity

f)	Increase liabilities

g)	Decrease liabilities

Received $820 of cash from a customer for work to be performed next month.

Question 39 options:

a)	Decrease liabilities

b)	This is an event, not a transaction.

c)	Increase assets

d)	Increase equity

e)	Decrease assets

f)	Decrease equity

g)	Increase liabilities