(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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Assets =Liabilities + Shareholders' Equity Transaction Example: Shareholders purchase shares for $10,000 a. Equipment is purchased for $2,000 cash. b. $3,000 cash is borrowed from a bank. c. Goods are sold to customers for $4,000. The customer will pay in 45 days. d. $4,500 cash is paid to employees for work done in the current year. e. A cash dividend of $5,000 is paid to the shareholders. $10,000+ Cash + $10,000 + Capital stock +