QUESTION 2 12 MARKS

For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged. (Hint: Remember the accounting equation.) You need to show the $amounts as well as indicate increase or decrease for each transaction.

		Assets (A)	Liabilities (L)	Equity (E)
a.	Obtained a loan to purchase a Trailer for $25,000.
b.	The owner took $15,000 of supplies for personal use.
c.	An accounts receivable, who owes $7,000, made a part payment of $4,000.
d.	Purchased stock for $18,000, paying $12,000 cash and the balance on credit.
e.	Paid $6,000 in respect of accounts payable in cash.
f.	Sold $10,000 of goods on credit.