Question

Identifying effects of transactions using the accounting equation LO PI

Answer 1

Answer:

A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000

B. Asset side in increased and decreased

C. Asset and liability will increase by $11,000

D. Asset will increase

E. Asset will increase

F. Asset will increase and decrease by $5,800

G. Asset will decrease

H. Asset will increase

I. Liability will decrease

J. Asset and capital will decrease by $1,200

Explanation:

Accounting equation is Asset = Liabilities + Capital

Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.