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Indicate how the following business transactions affect the basic accounting equation. (asset, liability, or owner Equity) Made cash investment to start business. (Already Done) Paid
- Indicate how the following business transactions affect the basic accounting equation. (asset, liability, or owner Equity)
- Made cash investment to start business. (Already Done)
- Paid insurance expenses in advance.
- Purchased Car for cash.
- Perform service on credit
- Received cash in advance for service provided next month.
- Incurred rent expenses that will be paid next month.
- Withdrawal of cash by owner.
- Billed customers for services performed.
- Purchase supplies on account.
Solution:
- Increase in Asset and increase in Owner Equity.
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