Identify the impact on the accounting equation of each of the following transactions.
- Purchase office supplies on account.
- Paid secretary weekly salary.
- Purchased office furniture for cash.
- Received monthly utility bill to be paid at later time.
Solution 184 (5 min.)
- Increase assets and increase liabilities.
- Decrease assets and decrease owner’s equity.
- Increase assets and decrease assets.
- Increase liabilities and decrease owner’s equity.