Harrold Ltd. records their business transactions into thebasic accounting equation.

For each of the followingindependentbusiness activities, indicate the effect on the basic accounting equation.

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

Question 31(2 points)

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

Question 31 options:

a)

Increase equity

b)

Decrease assets

c)

Increase liabilities

d)

Increase assets

e)

This is an event, not a transaction.

f)

Decrease liabilities

g)

Decrease equity

Question 32(2 points)

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

Question 32 options:

a)

Decrease liabilities

b)

Increase equity

c)

Increase liabilities

d)

Decrease equity

e)

Increase assets

f)

This is an event, not a transaction.

g)

Decrease assets

Question 33(2 points)

Paid $500 dividend in cash to the owners.

Question 33 options:

a)

This is an event, not a transaction.

b)

Decrease equity

c)

Increase liabilities

d)

Increase assets

e)

Decrease liabilities

f)

Increase equity

g)

Decrease assets

Question 34(2 points)

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

Question 34 options:

a)

This is an event, not a transaction.

b)

Decrease liabilities

c)

Decrease equity

d)

Decrease assets

e)

Increase liabilities

f)

Increase assets

g)

Increase equity

Question 35(2 points)

Collected $800 of accounts receivable from a customer.

Question 35 options:

a)

Increase equity

b)

Increase assets

c)

Increase liabilities

d)

Decrease equity

e)

This is an event, not a transaction.

f)

Decrease assets

g)

Decrease liabilities

Question 36(2 points)

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

Question 36 options:

a)

Increase assets

b)

This is an event, not a transaction.

c)

Decrease assets

d)

Increase liabilities

e)

Increase equity

f)

Decrease equity

g)

Decrease liabilities

Question 37(2 points)

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

Question 37 options:

a)

Increase liabilities

b)

Increase equity

c)

This is an event, not a transaction.

d)

Increase assets

e)

Decrease assets

f)

Decrease equity

g)

Decrease liabilities

Question 38(2 points)

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

Question 38 options:

a)

Increase assets

b)

Decrease assets

c)

Decrease liabilities

d)

Increase liabilities

e)

Increase equity

f)

This is an event, not a transaction.

g)

Decrease equity

Question 39(2 points)

Purchase $1,000 of inventory on account.

Question 39 options:

a)

Increase assets

b)

This is an event, not a transaction.

c)

Decrease liabilities

d)

Decrease assets

e)

Increase equity

f)

Increase liabilities

g)

Decrease equity