Transaction 4-Earning of Service Revenue for Cash Smart Touch Learning earns service revenue by providing training services for clients. The business earns $5,500 of revenue and collects this amount in cash. The effect on the accounting equation is an increase in Cash and an increase in Service Revenue as follows: ASSETS Cash + Office + Land Supplies Bal. $10,000 + $500 + $20,000 (4) +5,500 Bal. $15,500 + $500 + $20,000 LIABILITIES + Accounts + Payable $500 $500 EQUITY Contributed + Retained Capital Earnings Common Stock $30,000 + Service Revenue +5,500 $30,000 + $5,500 A revenue transaction grows the business, as shown by the increases in assets and equity.