Ex. 250 Analyze the transactions of a business organized as a proprietorship described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase...

Ex. 250

Analyze the transactions of a business organized as a proprietorship described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a decrease.

Assets=Liabilities+Equity

1. Received cash for services rendered.

2. Purchased office equipment on credit.

3. Paid employees' salaries.

4. Received cash from customer in

payment on account.

5. Paid telephone bill for the month.

6. Paid for office equipment purchased

in transaction 2.

7. Purchased office supplies on credit.

8. Paid dividends.

9. Obtained a loan from the bank.

10. Billed customers for services rendered.

Solution 250