For each of the following transactions, identify the effects on the accounting equation. Use “+” to indicate an increase and “-” to indicate a decrease. Use “A”, “L” and “E” to indicate assets, liabilities, and equity, respectively. Part (a) has been completed as an example.
a. L. Berryman invested $100,000 in the new corporation in exchange for stock. +A +E
b. Land was purchased for $50,000. A down payment of $15,000 cash was made and a note was signed for the balance.
c. Services were rendered to customers for cash.
d. A building was purchased for cash.
e. Supplies were purchased for cash.
f. Paid the office secretary’s salary.
g. The amount owed on the land from part (b) was paid.
a. +A +E
b. +A +L
c. +A +E
d. +A – A
e. +A – A
f. -A – E
g. -A – L