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CP 1-1 The following list covers many of the types of financial transactions. Notice that each transaction has an equal and offsetting effect on the accounting equation. Types of accounting transactions ASSETS = LIABILITIES + STOCKHOLDERS EQUITY (+) (+) (+) (+)(-) (-) (-) nimi wooo III (+) (-) (+)(-) (+)(-) Required: Using the appropriate accounting equation, study the following transactions and identify the effect of each on assets, liabilities and stockholders' equity, as applicable. Use a (+) to denote an increase and a (-) to denote a decrease, if any. A = L+E Example: |||| ||||| |||| || || || Issued common stock for cash Purchased a truck for cash Received a bank loan to pay for equipment Purchased the equipment for cash Made a deposit for electricity service to be provided in the future Paid rent for the month just ended Signed a new union contract that provides for increased wages in the future Hired a messenger service to deliver letters during a mail strike Received a parcel; paid the delivery service Billed customers for services performed Made a cash payment to satisfy an outstanding obligation | |||| |||| ||| | | | Received a payment of cash in satisfaction of an amount owed by a customer Collected cash from a customer for services rendered the same day Paid cash for truck operating expenses (gas, oil, etc.) Made a monthly payment on the bank loan; this payment included a payment on part of the loan and also an amount of interest expense. (Hint: This transaction affects more than two parts of the accounting equation.) Issued stock in the company to pay off a loan Paid a dividend with cash. - - ||