Tell how the financial statements would change because of the transaction. Be specific about how the financial statements would change: give the name of the financial statement (Income Statement, Statement of Retained Earnings, and Balance Sheet) and section, if applicable (i.e. Equity section). Are the items on the financial statement increasing or decreasing? If something is inaccurate in the original post, please point out what the correct answer is. Which accounts are involved in the transaction? Cash/Equipment asset Whether the accounts involved go up or down? Cash asset decrease /Equipment increase Which account is debited and which account is credited? Cash debited/ Equipment credited Receive cash from customer who is paying their account Receive cash from owner as an investment and issue shares of stock Pay 6 month's rent in advance Receive cash from customer for services to be performed next month Pay vendor on account Perform services for cash