Problem 12 (10 Points)

Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign () to indicate a decrease.

Stockholders

Assets = Liabilities + Equity

1. Received cash for services rendered. _______ _______ _______

2. Purchased office equipment on credit. _______ _______ _______

3. Paid employees' salaries. _______ _______ _______

4. Received cash from customer in payment

on account. _______ _______ _______

5. Paid telephone bill for the month. _______ _______ _______

6. Paid for office equipment purchased in

transaction 2. _______ _______ _______

7. Purchased office supplies on credit. _______ _______ _______

8. Paid dividends. _______ _______ _______

9. Obtained a loan from the bank. _______ _______ _______

10. Billed customers for services rendered. _______ _______ _______