Problem 1:

For each of the transactions below, record whether it would result in an increase or decrease in assets and/or liabilities by placing an X in the appropriate boxes. Use the template provided to document your answers. An organization:

1. Purchases supplies with cash
2. Purchases supplies on account
3. Takes out a loan
4. Repays loan principal
5. Receives payment on a pledge made by a donor
6. Makes a payment on an amount it owes
7. Prepays for insurance
8. Pays employee wages that were earned by the employees
9. Begins using office space with a 10-year lease for property

provide formulas

Problem 1
	Assets		Liabilities
Transaction	Up	Down	Up	Down
1. Purchases supplies with cash
2. Purchases supplies on account
3. Takes out a loan
4. Repays loan principal
5. Receives payment on a pledge
6. Makes a payment on an amount it owes
7. Prepays for insurance
8. Pays employees wages
9. Begins using office space with a 10-year lease for the property