Answer and Explanation:
The indications of the effect of each of following transactions are as follows
Particulars Assets Liabilities Stockholder equity
a. Borrowed
money from bank Increase Decrease No effect
b. Sold land for Cash increase No effect No effect
cash at Land decrease
a price equal
to its cost
c. Paid a liability Decrease Decrease No effect
d. Returned for credit Decrease Decrease No effect
some of the office
equipment previously
purchased on credit
but not yet paid for
e. Sold land for cash at Cash increase No effect Increase as Gain
a price in excess of cost Land decrease
f. Purchased a computer Increase Increase No effect
on credit
g. The owner invested
cash in the business Increase No effect Increase
h. Purchased office Increase in office No effect No effect
equipment for cash Decrease in cash
g. Collected an Increase in cash No effect No effect
account receivable Decrease in account
receivable
