Identify assets, liabilities, and equity (LO 6) Determine effect of transac tions on basic accounting equation. (LO) BE1-5 Indicate whether each of the following items is an asset (A), liability (L), or part of equity (E). (a) Accounts receivable. (d) Supplies. (b) Salaries and wages payable. (e) Share capital-ordinary. (c) Equipment ( Notes payable BE1-6 Presented below are three business transactions. On a sheet of paper, list the letters (a), (b), and (c) with columns for assets, liabilities, and equity. For each column, indicate whether the transactions increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and equity (a) Purchased supplies on account. (b) Received cash for performing a service. (c) Paid expenses in cash. BE1-7 Follow the same format as BE1-6 above. Determine the effect on assets, liabilities, and equity of the following three transactions (a) Shareholders invested cash in the business for ordinary shares. (b) Paid a cash dividend. (c) Received cash from a customer who had previously been billed for services performed BE1-8 Classify each of the following items as dividends (D), revenue (R), or expense (E). (a) Advertising expense. (e) Dividends (b) Service revenue. (1) Rent revenue. (c) Insurance expense. (g) Utilities expense. (d) Salaries and wages expense. Determine effect of transactions on accounting equation (LO7) Classify items affecting equity, (106)