Part Three-Analyzing How Transactions That Affect Owner's Equity Change an Accounting Equation Directions: For each of the following transactions, select the two accounts in the accounting equation that are changed. Decide if each account is increased or decreased. Place a "+" in the column if the account is increased. Place a "-" in the column if the account is decreased. Transactions 1-2. Received cash from sales. (p. 26) 3-4. Sold services on account to Kids Time. (p. 26) 5-6. Paid cash for rent. (p. 27) 7-8. Paid cash for telephone bill. (p. 27) 9-10. Received cash on account from Kids Time. (p. 28) 11-12. Paid cash to owner for personal use. (p. 28) Assets Trans. No. Accts. Rec.- + Cash Kids Time 1-2. 3-4. 5-6. 7-8. 9-10. 11-12. Liabilities + Owner's Equity Supplies Prepaid Insurance Accts. Pay.-Ling Music Supplies B. Trevio, + Capital