Answer:
2. The owner invests personal cash in the business.
Assets: Increase
Liabilities: No Effect
Owner's (or Stockholders') Equity: Increase
3. The owner withdraws cash from the business for personal use.
Assets: Decrease
Liabilities: No Effect
Owner's (or Stockholders') Equity: Decrease
4. The company receives cash from a bank loan.
Assets: Increase
Liabilities: Increase
Owner's (or Stockholders') Equity: No Effect
5. The company repays the bank that had lent money to the company.
Assets: Decrease
Liabilities: Decrease
Owner's (or Stockholders') Equity: No Effect
6. The company purchases equipment with its cash.
Assets: one increases and another decreases, but it total assets don't change
Liabilities: No Effect
Owner's (or Stockholders') Equity: No Effect
7. The owner contributes his/her personal truck to the business.
Assets: Increase
Liabilities: No Effect
Owner's (or Stockholders') Equity: Increase
8. The company purchases a significant amount of supplies on credit.
Assets: Increase
Liabilities: Increase
Owner's (or Stockholders') Equity: No Effect
9. The company purchases land by paying half in cash and signing a note payable for the other half.
Assets: Increase
Liabilities: Increase
Owner's (or Stockholders') Equity: No Effect
10. In May, Company X records the transaction by a debit to Accounts Receivable for $5,000 and a credit to Service Revenues for $5,000. What is the effect of this entry upon the accounting equation for Company X?
Assets: Increase
Liabilities: No Effect
Owner's (or Stockholders') Equity: Increase
11. In June, Company X receives the $5,000. What is the effect on the accounting equation and which accounts are affected at Company X?
Assets: No Effect
Liabilities: No Effect
Owner's (or Stockholders') Equity: No Effect
12. What is the effect on Client Q's accounting equation in May when Client Q records the transaction as a debit to Consultant Expense for $5,000 and a credit to Accounts Payable for $5,000?
Assets: No Effect
Liabilities: Increase
Owner's (or Stockholders') Equity: Decrease
13. What is the effect on Client Q's accounting equation in June when Client Q remits the $5,000? Also, which accounts will be involved?
Assets: Decrease
Liabilities: Decrease
Owner's (or Stockholders') Equity: No Effect
