(Record the effect of transactions on the accounting equation, LO 2, 3, 4) Show the effect that each transaction described below has on the elements of the accounting equation. Also, specify the type of asset, liability or owners’ equity account that would be affected.

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Transaction Example: Partners purchase partnership units for $10,000. a. The partnership purchases new office furniture for $10,000. The furniture will be paid for in 90 days. b. Partners take out a $1,000,000 mortgage on a building that was purchased several years ago. c. Services are sold for $15,000. The customer paid in cash. d. $6,000 cash is paid to employees for work done last year, e. A client makes a $10,000 deposit for work that will be done next year. f. Last year, the partnership purchased liability insurance. The policy cost $12,000 and covered three years beginning at the start of the current year. The policy was paid for in cash. Assets = Liabilities: + $10,000+ Cash + Partners' Equity $10,000+ Partners' equity+