Question

Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on assets, liabilities, and stockholders’ equity. Assets Liabilities Stockholders’ Equity a. Purchased supplies on account. select between increased, decreased, or had no effect select between increased, decreased, or had no effect select between increased, decreased, or had no effect b. Received cash for performing a service. select between increased, decreased, or had no effect select between increased, decreased, or had no effect select between increased, decreased, or had no effect c. Expenses paid in cash.

Answer 1

Answer:

See attached file

Explanation:

Accounting Equation Formula:

Assets = Liabilities + Stockholders' Equity

The equation shows that Assets are increased by Debits and decreased by Credits, instead, Liabilities and Stockholders´ Equity decreased by Debits and increased by Credits. In the file, Debits and Credits are represented by the word increased and decreased according to if the transaction has a positive or negative effect on each element.