Selected transactions for Fabulous Flora Company are as follows.

Made cash investment to start business.

Purchased equipment on account.

Paid salaries.

Billed customers for services performed.

Received cash from customers billed in (4).

Withdrew cash for owners personal use.

Incurred advertising expense on account.

Purchased additional equipment for cash.

Received cash from customers when service was performed.

Instructions

List the numbers of the above transactions and describe the effect of each transaction on assets, liabilities, and owners equity. For example, the first answer is: (1) Increase in assets and increase in owners equity.