PROBLEM 2.14 Effects of transactions on assets, liabilities and shareholders' equity What is the effect on assets, liabilities and shareholders' equity of each of the following transactions? Use the notations 'increase', 'decrease' or 'no effect 1 Owners of the company contribute motor vehicles in return for additional shares. 2 Receive payment from accounts receivable. 3 Purchase equipment for cash 4 Issue shares to pay off a long-term loan. 5 Pay amounts owed to accounts payable. Sell inventory for cash at a price higher than its cost. Purchase inventory on credit. Pay salaries to employees. 6 7 8