Solved

Match Each Transaction with Its Effect on the Accounting Equation

Question 39

Matching

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.

Premises:
Received cash for services provided
Received utility bill to be paid next month
Contribution of land by stockholder
Paid part of an amount owed to a creditor
Paid cash for the purchase of supplies
Received payment from a customer on account
Payment of dividends
Provided a service to a customer on account
Purchased supplies on credit
Paid wages
Payment for common stock by stockholder
Borrowed money from a bank
Purchased equipment for cash
Received cash for providing services to customers
Used up supplies that were already on hand
Responses:
Increase assets, increase liabilities
Increase liabilities, decrease stockholders' equity
Increase assets, increase stockholders' equity
No effect
Decrease assets, decrease liabilities
Decrease assets, decrease stockholders' equity

Correct Answer:

Received cash for services provided
Received utility bill to be paid next month
Contribution of land by stockholder
Paid part of an amount owed to a creditor
Paid cash for the purchase of supplies
Received payment from a customer on account
Payment of dividends
Provided a service to a customer on account
Purchased supplies on credit
Paid wages
Payment for common stock by stockholder
Borrowed money from a bank
Purchased equipment for cash
Received cash for providing services to customers
Used up supplies that were already on hand
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