Indicate the effect each of the following transactions has on the basic accounting equation by indicating one of the following:

a. Decrease in an asset, decrease in a liability.

b. Increase in an asset, increase in stockholders' equity.

c. Increase in one asset, decrease in another asset.

d. Increase in an asset, increase in a liability.

e. None of the above.

1. Purchased equipment on account.

2. Returned an item of defective equipment purchased in (1).

3. Paid cash to the supplier of equipment purchased in (1) for the remainder of the equipment.

4. Received cash on account from customers.

5. The stockholders invested additional cash in the business.